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Call of Duty Bid: Microsoft Makes New Bid to Acquire Call of Duty Giant

The CMA will make certain decisions on Microsoft’s revised bid by October 18, without which no further conclusions will be made.


In the newest turn of events, Microsoft has made an offer to acquire Activision Blizzard, the company behind the Call of Duty video game. Its original bid of $69bn is however blocked by UK regulators.

According to Brad Smith, Microsoft’s president, the offer was “subsequently different” and should be approved.

While the UK Competition and Markets Authority (CMA) is set to analyze the deal, they noted that “this is not a green light.”

If accepted, the offer would put an end to a turbulent 18 months for Microsoft.

Regulators Express Their Concerns

Since the initial announcement of the bid in January last year, the proposed merger has raised concerns of several regulators around the world, claiming that doing so could restrain the choices of gamers. 

In regards to this, CMA will make certain decisions on Microsoft’s revised bid by October 18, without which no further conclusions will be made. 

In counter to the allegations, Microsoft confirms this merger will in fact boost demands for the Xbox console and its gaming subscription business. 

In the revised bid, Microsoft has agreed to the proposal seeking rights to stream Activision games from the cloud to Ubisoft, a video games publisher.

"Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service - Xbox Cloud Gaming - or to exclusively control the licensing terms of Activision Blizzard games for rival services," Mr. Smith stated.

It claimed that 40 nations, including the European Union and China, had approved its initial bid for Activision as of this point. The US Federal Trade Commission is still attempting to obstruct the deal in the US, but the courts have repeatedly overruled its arguments.

However, CMA has blocked the tie-up in April, saying this would harm innovation and choice for gamers in the rapidly evolving cloud gaming business. To this, Mr. Smith said it was “bad for Britain” and marked Microsoft’s “darkest day” in the four decades of its operating in the country. Also, this was a shock to the UK government, which aims for the country to become a ‘tech powerhouse.’

Activision boss Bobby Kotick said the deal had been "a longer journey than expected" but that "nothing substantially changes" under the new bid.

"We will continue to work closely with Microsoft and the CMA throughout the remaining review process, and we are committed to help Microsoft clear any final hurdles as quickly as possible," he said.

Commenting on this issue, Microsoft’s rival Sony too has objected to the deal, claiming that following the merger, Microsoft will stop some major games that are available in its own PlayStation business. 

For the merger to succeed, the revised bid is required to secure the approval of regulators in the UK, the U.S. and the EU. In case this bid does go ahead, this will also be a winning situation for the CMA, which could then earn an opportunity to approve the bid. 

In regards to this, CMA’s chief executive Sarah Cardell says that Microsoft’s new offer was "substantially different from what was put on the table previously[…] We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments."

"Our goal has not changed - any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice," she said.  

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