Microsoft's $69 Billion Takeover of Call of Duty Maker Activision Gets US Green Light, UK's CMA Softens Stance
Microsoft cleared major hurdles to its plan to buy videogame maker Activision Blizzard on Tuesday, after a US judge gave a thumbs-up to the $69 billion (roughly Rs. 5,65,480 crore) deal and a British regulator suggested it could reconsider its opposition.
Activision shares surged 10 percent on the day, as the US and Britain have been the two countries opposed to what would be Microsoft's biggest deal ever and the largest transaction in the videogame industry's history. Microsoft shares rose 64 cents to $332.47 (roughly Rs. 27,425).
US District Judge Jacqueline Scott Corley in San Francisco rejected the Biden administration's contention that the deal would hurt consumers by giving Xbox game console-maker Microsoft exclusive access to games including the best-selling Call of Duty.
Shortly after the US judge's order, Britain's Competition and Markets Authority (CMA) said it was prepared to consider Microsoft's proposals to resolve antitrust concerns in the UK, suggesting the two parties may come to a resolution.
"The various testimonies that have surfaced during the US trial all weaken the UK's antitrust watchdog's arguments,” said Joost Van Dreunen, a lecturer at New York University's Stern School of Business.
The US Federal Trade Commission (FTC) had argued that Microsoft would be able to use the Activision games to leave rival console makers like Nintendo and market-leader Sony Group out in the cold.
Corley disagreed in her opinion.
"The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets," she
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