The UK’s Competition and Markets Authority says that if Microsoft is serious about buying Activision Blizzard, there’s one sure way to make it happen. It’s splitting up Activision Blizzard.
A bold proposal is a new “Notice of Possible Remedies (opens in new tab)A step-by-step guide outlining CMA concerns and the different ways Microsoft and Activision Blizzard might address them.
According to the CMA, there are two types of “remedies” available in this situation. One is structural, changing the terms of the proposed transaction, and the other is behavioral, effectively promising good faith in exchange for permission for the parties involved to do something. is what you do. they want In a merger situation, the CMA prefers structural improvements because it “requires little oversight and enforcement.”
In the case of the Activision Blizzard acquisition, the CMA listed two possible structural remedies.
- (a) require a partial sale of Activision Blizzard, Inc.; This may be:
(i) Sale of business related to Call of Duty.
(ii) the sale of the Activision segment of Activision Blizzard, Inc. (the Activision segment); This includes businesses related to Call of Duty.
(iii) the sale of the Activision and Blizzard segments of Activision Blizzard, Inc. (Blizzard Segment); This includes business related to Call of Duty and World of Warcraft, among other titles. - (b) No Mergers.
So basically, if Activision Blizzard sells or splits the company or some of its holdings so that Microsoft can no longer control the entire package with the acquisition, the CMA will green light the deal. It’s a big step, and given that every division of Activision Blizzard has significant value, Call of Duty, King mobile games, pretty much everything Blizzard does, and the huge back catalog all add up to the whole is a very favorable element of It seems hard to get.
Activision isn’t too interested in the plan either. “The CMA proposal does not represent a final decision on the deal,” an Activision Blizzard representative said in an email sent to PC Gamers. We already know they want Call of Duty available on all platforms.
“We look forward to addressing the CMA’s concerns and are confident this deal will be good for players and good for competition in the gaming industry. Between now and April. , I hope that the CMA can better understand our industry and help ensure that they are able to accomplish the mandate set out.”
As Activision Blizzard stated, the CMA’s notice is not a final decision of any kind, but is “intended as a starting point for discussion” between the CMA, Microsoft, and Activision Blizzard. The fact that we areIf the proposed merger faces regulatory hurdles, a sale isn’t a particularly unusual reaction (the U.S. Federal Trade Commission Whole guide (opens in new tab)), but to my knowledge, this is the first time a split for Activision Blizzard has been proposed. Would Microsoft still be interested in this deal if they had to give up Call of Duty and World of Warcraft to make it happen? If the CMA is pondering the idea, the FTC must be thinking about it too.
Despite the CMA’s seemingly staunch resistance to the proposed merger, Activision Blizzard CEO Bobby Kotick seems uninterested in striking a conciliatory tone. In a recent interview with CNBC, he accused regulators of “lacking independent thought.” (opens in new tab) He warned that Britain “will never be Silicon Valley” if the deal is not approved. [it’ll] Become Death Valley. “
