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.

[SullysCigar]

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

[ElendilsSorrow]

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

[SullysCigar]

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.

[excaliburps]

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.

[SullysCigar]

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.

[Hofstaderman]

Back door dealing *giggles*

[Aloymetal]

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...

[Hofstaderman]

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

[S2Killinit]

Wel, MS does like it in the back door.

[darthv72]

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?

[S2Killinit]

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.

[crazyCoconuts]

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.

[jivah]

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__]

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

[SullysCigar]

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

[__SteakDeck__]

@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.

[SullysCigar]

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?

[Cockney]

Experts said the cma were sure to pass it too

[Gamerscore2077]

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.

[1Victor]

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

[Northpoint]

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

[PapaBop]

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

[italiangamer]

The CMA is not joking around.

[anast]

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

[S2Killinit]

MS pretty much threatened the United Kingdom.

[anast]

Get the popcorn out. It's getting good.

[gunnerforlife]

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.

[PapaBop]

^^^ 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.

[Elda]

"Snickers" (not talking about the candy bar)

[MrDead]

It's nice to have someone looking out for gamers against the MS buyout of the industry... I hope it lasts as MS has unlimited funds to screw over the gaming community and are no doubt already looking at other publishers to lock away.

[gleepot]

They aren't looking out for anyone. Their whole justification is based around cloud gaming.

[darkrider]

They must do this because everybody knows how this type of companies work!!!! Good move

[Hofstaderman]

This moves really tells you what any response to a challenge would be…

[__SteakDeck__]

Michael Pachter Said the CMA will cave. Lol

[S2Killinit]

This is one time Im going to agree with him. Not that I want it to happen, as the whole thing is really the shittiest thing anyone has ever done to gaming.

[Eonjay]

@S2Killinit
What's makes you trust Pacther on this?

[jivah]

Youguysnewherehuh.jpg

[JokerBoy129]

I think Microsoft is going to do the unthinkable to get this to pass... I think they're going to go nuclear on the UK and THREATEN to pull all of Microsoft out of the UK which would force the government to get involved because the UK is dependent on Microsoft and Windows to run everything. I wouldn't blame Microsoft neither. Only 5000 people at any given moment are using or able to use Xbox Cloud and right after the CMA blocked the ABK deal they passed a massive Amazon deal that gave millions of customers access to their cloud. Which is ironic simply because the ABK deal was blocked on the worry that Microsoft would have a cloud monopoly. Shit is going to get crazy now.

[Aloymetal]

''I think Microsoft is going to do the unthinkable to get this to pass...''
No doubt about that, MS/Xbox weren't happy being the ''leftovers'' of gaming around the planet, they want to control and be the top dog in gaming just like they're in the operating system/office space. They kind of tried for 2 decades to be the most relevant by selling hardware and software like the other 2 but couldn't achieve it.

[jznrpg]

They never tried to make games like the other 2 . They made a couple games Fable got canceled and Crackdown 3 was released but they never made a concentrated effort to release more than Gears Halo and Forza. They are on the games business but aren’t a a good game making company.

[Hofstaderman]

They signed contracts with all governmental agencies. They cannot just pull out. They would have to discuss breach of contract fees and handover timeframes.

[SullysCigar]

It wasn't quite that straightforward.

Regarding MS pulling out of UK and refusing Windows licensing, etc. do you really think MS would do that? How much would they lose annually with a move like that and how does that compare to what they'd make if the deal was passed? I think it's easy to be emotional about this and say things like "MS should this, MS should that", but that's not really how it works.

Can you imagine if they did do that, though? Maybe Apple steps up to the plate, or Linux - how much more power would that bring those companies - and would MS really want that to happen? What if the EU ditched Windows after that?

There are too many massive implications for MS to do something like that. As a business, in general, they're winning right now. A move like that could see them implode - and for what? COD? To save face? To win an argument? Lol

[Kados]

Nuclear bluff. You do not have to actually be bat shit crazy, you just need to convince your enemy you are bat shit crazy long enough for them to cave.

Tell the UK gov that as soon as the current contracts expire, they will ignore the order, finalize the deal, and pull out both MS and Acti from the UK market. Watch how fast the UK orders the CMA to pass it or get wrecked.

The UK is not going to risk their entire video game and PC industry going tits up overnight for a single deal like this, which the CMA is already on shaky legal ground in blocking.

Another, less nuclear option, that would essentially achieve the same thing, while giving both Sony and the CMA a giant middle finger. They could just offer ABK a $69B 50 year universal exclusivity agreement. MS would then get 100% exclusive access to everything ABK makes, and a much larger portion of the profits than a typical exclusivity agreement, in exchange for full funding, They would operate together the same as if MS owned them, ABK gets all the same benefits, MS gets all the same benefits, but ABK would technically remain independent, with MS not gaining any stakes in the company.

The CMA, FTC, etc would be completely legally powerless to do anything about it.

[shinoff2183]

If countries around the world seen the uk survive would ms others may follow. Bad precedent for ms to set

[Gamerscore2077]

That wouldn’t make financial sense to MS. This is a business at the end of day, & there’s entirely too much money on the table for MS to pull out of the UK because this deal didn’t go thru.

[Seafort]

Microsoft isn't going anywhere. They just this last week invested in a UK AI start-up company.

They have too much invested in the UK market to just walk away. Besides the UK is a massive market for Xbox and their future gaming division.

it would be a massive loss to them. Something their shareholders would not take too kindly to.

[S2Killinit]

@Jokerboy
MS already threatened the United Kingdom.

Also, its not unthinkable, MS WILL get this deal to pass, to the detriment of all gamers, but it will change a LOT in the background and fine details as MS will give concessions to get it passed in some shape or form, even if it is just to save face.

[purple101]

streaming domminance is worth that much i agree.

so its a strong possibility they pull all windows and support services from uk.

however, everyone in rest of the world, would see the bullying, and they would loose equally in credibility,
loss of customers, etc.. not to mention, it would put a black cloud over their reputation, which is already teetering on the abyss (at least, in the gaming world)

so they would end up back o square one.

at the end of the day, Microsoft has big server farms, but so do Google and Amazon. so uk doesnt need them prehaps as much as they think.

[shinoff2183]

Jokerboy

Ms will not do that. As a whole it would be dumb and a bad precedent. Couple things it was rumored ms was not long ago probably still would be upset with the console division. They are not going to fk the whole company up over the Xbox division. Your kidding yourself and giving ms more pull then they actually have.

[JokerBoy129]

People need to chill here. Reread what I said. I didn't say I want it, not did I say they'd do it. I said that they might THREATEN to do it in order to get the government to intervein. The CMA is corrupt as hell and has a history of negligence to the people they supposedly represent. Microsoft knows this and is fighting back already. Hiring an ex lawyer of the queen?! You guys don't think theyre willing to do ANYTHING to pass this then YOURE the crazy ones lol! Again, I don't want this to happen, but I also know Microsoft doesn't like to lose and WILL fight dirty to make this happen.

[__SteakDeck__]

@JokerBoy129 The UK Government said that won’t intervene. They’re not the US. But with MS, who the hell knows. Money talks.

[blue88]

The deal is dead can we please move on.

[S2Killinit]

Not dead.

[XiNatsuDragnel]

CMA said nah not today

[Gamerscore2077]

It’s a shame, that this topic has dominated the game industry for well over a year now. I’m really sick of hearing about this.

[Unknown_Gamer5794]

Nice! That’s a loophole I could see them trying to exploit, so good on the CMA for closing it.

[gold_drake]

oooooo bish xD

the CMA doubling down is such a power move, i love it xD'DD

[S2Killinit]

Good! Scumbags.

[343_Guilty_Spark]

CMA won’t matter once EU approves Monday. I don’t care if you down vote me. The CMAs reason for blocking were flimsy at best. Can’t believe they actually counted GamePass subs as cloud.

When EU approves deal goes through, MSFT won’t put any ABK games on U K. GamePass but they’ll be everywhere else. Sorry UK gamers. God Save the Games!

[DarkZane]

What makes you think EU would approve it? It's more likely that they won't and they can even copy paste the same excuse the CMA used.

Even if they're saying right now from unknown (which means bogus) sources that it will pass, they said that about the CMA too and they blocked it.

I am pretty sure the FTC is also suing, which means they're not ok with the merge either.

[343_Guilty_Spark]

Because the EU isn’t anti-business.

[__SteakDeck__]

@DarkZane Reuters and Bloomberg are reporting that the EU will be approving on Monday. But I’m not sure how the EU approving will help much. The EU is apart of smaller European countries that MS isn’t really that big in. The CMA is much more important because it is MS’s 2nd biggest market, MS needs that.

[Asplundh]

How is it more likely to not be approved?

"no longer believes the deal would lead to a substantial lessening of competition in the console games market."

When they're saying stuff like this, seems like they're leaning toward approval to me.

[343_Guilty_Spark]

Except the excuse by the CMA was uneducated, unwarranted, and frankly lame.

[__SteakDeck__]

@Asplundh It was the CMA that said that.

[sactownlawyer916]

How to say I don’t know anything about global business workings without saying I don’t know anything about global business workings. SMH.

[SoulWarrior]

'MSFT won’t put any ABK games on U K'

Not sure how the board and shareholders of MS and ABK will feel about them not releasing potetionally their most popular games in their 2nd biggest market, they are barely relevant anywhere outside of these 2, and MS already declined structural remedies before.

Even if the EU do approve it, it doesn't really impact the size of the spanner the CMA blocking the deal has thrown in the works, this also buys time for the FTC to put their case together, which further drags this all out.

[343_Guilty_Spark]

Won’t put ABK games on GamePass

[GamingSinceForever]

Welp there goes the loophole option.

[computeSci]

Somebody correct me if I'm wrong but if this deal gets approved everywhere but the UK, wouldn't that mean no Activision games in UK only? CMA is supposed to have gamers interest but gamers in the UK might end up with nothing from said publisher?

[Eonjay]

No it doesn't mean that simply because the deal dies in its current form. First the deal between ABK and MSFT requires UK approval to close per their own contract so this whole thing is irrelevant unless they can get the CMA to reverse point blank. Don't listen to the internet lawyers. Without the UK the deal is dead.

[343_Guilty_Spark]

It just means UK gamers don’t get Activision games on GamePass.

I guess it’s possible Activision games don’t get sold there either - but probably wouldn’t work out to well for CMA when everyone complains

[__SteakDeck__]

@343_Guilty_Spark You keep coping, you sound desperate. Let me ask you this. With the exception of you wanting to play COD on gamepass at no additional charge, what are you as an Xbox gamer gaining from this? Outside of COD (MS can take it away eventually) MS will be taking away most Activision games. They’re going to be making most of those franchises exclusive to the least popular console and brand, how is that growing gaming?

[343_Guilty_Spark]

-Steakdeck-

Ummm last I checked GamePass costa money. I subscribe. I play what’s available on the service. What do I gain? Day and date games on all of my devices. There is no evidence of MSFT taking away games, which is why the CMA didn’t go after Xbox on the basis of console gaming.

You sound desperate. Don’t @ me. Go play your games.

[Viljong]

Cma cannot dictate this things. And if a company wants to sell it sells. Its a private sector company so they do as they please.

[pitythefool]

If the ruling of the CMA is as pointless as some claim then why did MS through an almighty bitch fit over it, why are they spending more money on lawyers to appeal.

Hell why did they even seek approval in the first place, it’s obviously because it’s a bigger obstacle than Xbox fans want to admit.

Which is a weird stance to take considering they had the champagne on ice when they thought the CMA would approve.

[343_Guilty_Spark]

Because it’s common practice to appeal if the grounds for the ruling are not justified.

They talked directly with CMA to provide behavioural remedies…CMA pulled the rug and said cloud.

[pitythefool]

Okay, but why even bother, the ruling is irrelevant right ?

They can just tell the UK to beat it, right ?

Common practice or not,

[cammers1995]

Microsoft is ruining gaming by doing this. Theyre attempting to steal away all the major big franchises and keep them on Xbox shafting those on playstation, Nintendo and other future consoles. Fallout, elder scrolls, star field, etc are going to be Xbox only now. And with them also buying up obsidian, the outer worlds and pillars of eternity as well. Had they got Activision that would be meant call of duty, Spyro, crash, etc. I'm sure Microsoft is eyeing others now too.

[343_Guilty_Spark]

All the IPs you listed would be on multiple platforms. If this was Sony buying they’d lock everything to PS and make you wait months to play on PC.