The ambitious Microsoft-Activision merger isn't going very smoothly. In recent news, the British Competition and Markets Authority (CMA) has warned that the deal will be reinvestigated once again should the Redmond-based tech giant restructure it to appease the UK authorities. This might not pan as smoothly as the gaming department Phil Spencer put in a company letter last night.
Microsoft recently triumphed in the US. The American Federal Trade Commission (FTC) sued the company citing that the merger would give unprecedented control over the gaming market. However, a US court decided otherwise following a week's worth of evidence and testimonials. Although the American win is a massive vote of confidence in Microsoft's favor, its fight across the pond isn't shaping up well. The British authorities want to investigate the deal again if it plans to restructure it.
Where does the Microsoft-Activision deal stand now?
The Microsoft-Activision deal has been approved in almost every country. Before the USA, the deal got a green signal from the EU and China. However, UK authorities won't declare a final result until later this month.
Earlier today, Microsoft announced it would ask CMA to stop the court hearing and figure out how to negotiate the deal to appease the authorities. CMA's latest announcement comes as a response to this request.
Further investigations will only delay the acquisition. Nevertheless, more roadblocks can cause further complexities, thereby blocking the deal in more regions as revelations prompt more authorities to reopen the Microsoft-Activision deal.
The company is acquiring Activision for an eye-watering $68.7 billion. This will make the acquisition the largest in gaming history. However, unlike other acquisitions by leading game devs like PlayStation Studios and Take-Two Interactive, the deal won't be structured to benefit Microsoft's platforms and intellectual properties. Instead, the company will focus on bringing more games to gamers.
Microsoft is trying hard to climb the ranks in the gaming market. In a report released earlier this year, the company claimed it had already lost the console wars. Thus, it can be that Microsoft is trying to win it with better and more quality games.