If regulators approve the deal, acquisition of microsoft would become the world’s third-largest gaming company by revenue, however many competition authorities are currently investigating it. Microsoft’s proposed acquisition of troubled Call of Duty and Candy Crush game company Activision Blizzard for $68.7bn (£50.5bn) is under investigation. The cash acquisition would give the Xbox maker a leap into the mobile gaming sphere and “play a key role in developing metaverse platforms,” according to Microsoft boss Satya Nadella. If regulators approve the deal, acquisition of microsoft would become the world’s third-largest gaming company by revenue, however many competition authorities are currently investigating it.
The Competition and Markets Authority (CMA) said it will engage with counterparties around the world “as appropriate” and seek to issue a decision in its Phase 1 investigation after 40 working days, or the September 1st. At the end of the Phase 1 investigation, the CMA will have decided whether the merger could harm competition; if this is the case, you will need to initiate a detailed Phase 2 assessment. Activision’s shares had plunged nearly 40% since hitting a record last year after allegations of widespread sexual harassment and other misconduct surfaced. Microsoft said Activision CEO Bobby Kotick, who has even faced resignation calls from staff over his handling of complaints, would continue in the role.
Activision said that while it continued its work to address the issues, it had fired or terminated more than 36 employees and disciplined another 40. Acquisition of microsoft’s move was seen as giving it an edge over fierce console rival Sony, maker of the PlayStation, due to its vast library of games. His gaming investments in recent years have included the $7.5 billion acquisition of Minecraft maker Mojang Studios.