No matter how hard it tries, a company worth more than $2tn cannot position itself as the plucky underdog. Especially when it is able to write a $75bn cheque with ease.
On Wednesday, the UK’s Competition and Markets Authority declared that it would not approve Microsoft’s blockbuster acquisition of Activision Blizzard. Both companies make noises about a fight. But appeals are tough. And Microsoft still needs approvals in the US and Europe. Besides, neither side may need the other anymore.
Gaming has become a strategic area of interest for tech and media companies. Still, this acquisition was a curious one when announced in early 2022. The CMA has narrowed its focus on the deal’s impact on the nascent cloud and mobile gaming marketplace. The US’s Federal Trade Commission challenge examines the deal more broadly. But regulators everywhere have the same objection: that Microsoft’s control of Activision’s prized Call of Duty franchise could entrench the Seattle company’s place as a dominant distributor.