LogInThe regulator plans to reach an agreement on Microsoft's proposed acquisition of Activision Blizzard.
In light of Microsoft's victory against the Federal Trade Commission (FTC), securing the much-anticipated approval for the acquisition of Activision Blizzard, the UK's Competition and Markets Authority (CMA), which previously blocked the merger in April, has released a statement, declaring that they are now willing to halt legal proceedings against Microsoft.
The CMA stated that they are open to reviewing any proposals put forth by Microsoft to restructure the transaction in a manner that addresses the concerns outlined in their Final Report. Furthermore, they mentioned that Microsoft and Activision have already agreed with the CMA that suspending litigation in the UK would serve the public interest, allowing the CMA to prioritize its assessment of these proposals.
"We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our Final Report," reads the statement. "In order to be able to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of litigation in the UK would be in the public interest, and all parties have made a joint submission to the Competition Appeal Tribunal to this effect."
Brad Smith, President of Microsoft, additionally provided his input and affirmed that the company had reached an agreement with the CMA, acknowledging that temporarily suspending the litigation in the UK would be the most appropriate course of action.
"After today's court decision in the US, our focus now turns back to the UK," Smith noted. "While we ultimately disagree with the CMA's concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA."
It is also worth noting that following the conclusion of the Microsoft vs. FTC legal proceedings, Activision Blizzard experienced a significant surge in its stock price, reaching a new 52-week high of $92.91 ($90.99 at the moment of writing this) per share.
This marks the largest increase for the video game publisher since the initial announcement of the deal on January 18, 2022. Notably, Activision Blizzard's shares achieved their highest closing price since July 2021, while Microsoft's shares remained relatively unchanged.
Earlier, Xbox Head Phil Spencer also commented on the matter, thanking the court for promptly reaching a decision in their favor and acknowledging that the evidence presented by Microsoft clearly demonstrated the positive impact of the Activision Blizzard deal on the industry as a whole.
He also addressed the FTC's assertions regarding console switching, multi-game subscription services, and cloud, highlighting that these claims fail to accurately reflect the current realities of the gaming market.
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