UK To Block Microsoft's Activision Blizzard Acquisition

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Microsoft runs into its first major block against the ActivisionBlizzard merger as the UK's CMA will be blocked by week's end. Activision BlizzardEntertainment

about their impending decision, essentially letting the company know they would block the acquisition in the United Kingdom. The decision apparently came after the organization reviewed over three million Microsoft and Activision documents over the course of several month, as well as more than 2,100 emails from the public, ultimately concluding that the deal could alter the market and its growth for years to come.

The CMA's report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal. The report's conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.

While it's clear they are going to appeal, that statement is very telling of how the company may push forward if approved elsewhere.that EU Regulators are likely to approve the deal, which is a major factor in this after the UK separated itself from the EU during Brexit. If the merger is approved and they move forward, it is quite conceivable that the company could shut down all game sales, services, and more to the UK until approval or at least a compromise is made.

We'll keep an eye on the situation to see how it develops, but right now, it looks like a lot of plans for the merger are still up in the air.

 

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