Microsoft and Activision Prohibited From Acquiring Interest in Each Other by CMA

The UK CMA has temporarily forbidden Microsoft and Activision from acquiring a stake in each other through an interim order published today.

SullysCigar407d ago

It sounds like the CMA are closing the options for backdoor dealing between Microsoft and Activision.

ElendilsSorrow407d ago

Yeah, but even so, I doubt this would have much effect in the short-term unless either party has immediate plans to acquire a controlling stake in the other

SullysCigar407d ago

There was laymen talk doing the rounds, along the lines, "MS should just buy it in chunks, or Activision could create new companies - there's always a way". It seems like this puts paid to that unless the CMA decide to approve any individual instances/requests.

If MS/ABK lose their appeal against the CMA decision, the acquisition can't happen for at least 10 years. This latest CMA move appears to stop any shenanigans taking place before the appeal has taken place and an outcome arrived at. Happy for anyone to correct my understanding - I'm not a lawyer.

All this without factoring in the EU and FTC verdicts.

excaliburps407d ago

As they should be, right? I mean, if MS buys stake in Acti until they are the majority shareholder...it's almost like the same thing.

SullysCigar407d ago

Exactly. They probably saw the way Microsoft was strutting around sorting out contracts with all and sundry (like it was a done deal, before their verdict landed) and thought they'd better slap some shackles on the slippery rascals.

Aloymetal407d ago

Sad news for MS, no doubt they will try to hire O.J. Simpson's lawyer aka Robert Shapiro to take care of the situation...

Hofstaderman407d ago (Edited 407d ago )

@Aloymetal here’s a glove…if the glove don’t fit you must acquit. Lol

S2Killinit407d ago (Edited 407d ago )

Wel, MS does like it in the back door.

darthv72407d ago

Can they really tell two American companies that they can't make a deal with each other and expect it to stick throughout the rest of the world?

S2Killinit407d ago

Short answer, yes I believe they can.

I’m pretty sure regardless of the CMA decision, MS will get this passed in one form or another, even if its just to save face. What that will actually look like, we will have to wait and see.

crazyCoconuts407d ago

Isn't it that, since CMA is a UK governing body, they don't have a say about the rest of the world. But they would stop MS from doing business in the UK if they went against their wishes.
Which MS as a whole would of course not do.

jivah407d ago

They can't but they can but they can't. Simply cause the world right now the way its set up is that a shit ton of MS money flows through the London. It is one of the few financial hubs in the world. And it isn't exactly favorable to just up and leave the UK. So as small as the territory is they end to carry a good deal of weight. But MS being MS I'm sure they'll try to weasel something through. And with the CMA doing this I'm sure they'll try to counter every move. It'll definitely be a spectacle to watch.

__SteakDeck__407d ago

@SullysCigar Reuters and Bloomberg are reporting that the EU will approve on Monday.

SullysCigar407d ago

What does that have to do with this move from the CMA?

__SteakDeck__407d ago

@SullysCigar You said “All this without factoring in the EU and FTC verdicts”. The EU verdict will already be made Monday. I said this because I thought you didn’t know.

SullysCigar407d ago

Ah I get you now, you replied to the wrong comment lol

No, I knew the decision was due by 22 May, but thanks. FTC is due in August, I think?

Gamerscore2077407d ago

It’s insane, MS has a soon to be 3 yr old next gen console and this acquisition is talked about (& even praised by some of the fans) more than the actual games that’s on the system.

I’m not sure where Hellblade 2 is at, they’re still taking pictures at this point so the game seems pretty far out.

The Initiative is supposedly working on Perfect Dark with help from Crystal Dynamics, but it has been radio silence for years now.

Redfall was a huge disappointment, Avowed is MIA, Indiana Jones is MIA, etc.

It looks like MS is trying to turn the Xbox console as we know it, into a full fledge subscription service i.e. Gamepass.

1Victor407d ago

The plot is getting too thick get it off the fire before it burns

Northpoint407d ago

MS Lawyer: Don't worry, we can always work around it. *Sinister smile*
CMA: Nope.
MS: Lawyer: Aww...

PapaBop407d ago

That will teach that arrogant prick Brad Smith from insulting my country, I'm going to need to stock up on popcorn soon.

+ Show (6) more repliesLast reply 407d ago
anast407d ago

The CMA have to follow through now, if they let the deal go through they will be too weak to do much going forward.

S2Killinit407d ago

MS pretty much threatened the United Kingdom.

anast407d ago

Get the popcorn out. It's getting good.

gunnerforlife407d ago

Exactly.. They dug their own grave with that statement. If CMA accepts the deal afterwards.. It makes the whole uk government and CMA look look week and any company can walk all over them, so MS shot themselves in the foot with that statement, if they had just said we understand their fear and will look to alleviate their concerns.. Then they would have had an easier time of it.

PapaBop406d ago

^^^ UK government has nothing to do with CMA, it's completely independent. Which is probably a large reason why Microsoft are so salty, they have no ministers they can bribe like they do in America.