Michael Pachter Says This Is Why CMA Can’t Block The Microsoft – Activision Deal

gameranx.com:

Wedbush Securities analyst Michael Pachter was recently interviewed about the Microsoft – Activision deal, particularly the CMA regulation. In this new interview, he explains why the CMA has no leg to stand on to reject the deal, and will ultimately have to accept.

Of course, we must address Pachter’s notoriety in the past years, as a media talking head that’s made a lot of gamers angry with his comments. Because of his past rancor, gamers have documented very well when he has made incorrect predictions in the game industry.

But to be fair to Pachter, right or wrong, making those judgement calls is precisely his job. And his job also means he has to have an understanding of how the industry works, and even thinks, so there is value to his insight.

In this specific case, we are covering a credible argument which he bases on evidence, something that Microsoft themselves can use to defend their deal to the CMA and other regulators.

In an interview with Destin, he had this to say:

“So the reason that the CMA can’t really make this stick is that the CMA didn’t block the Amazon acquisition of MGM movies. And, they didn’t block the Disney acquisition of Fox movies and TV. They could have, but they didn’t say a word.

Why did Amazon buy MGM? To put their content on freebie and on Amazon Prime video. Why did Disney buy Fox? To put the content on Disney Plus. The Simpsons and Family Guy are on there right now, and the CMA said nothing about that.

Is that unfair to Netflix? Absolutely, it’s unfair to Netflix. Did Netflix complain? No, because they’re not a bunch of big babies.

So, the CMA can try to litigate and when Microsoft goes to court and says, wait a minute, you guys didn’t object to Amazon and MGM and– oh, by the way,