After a saga that has spanned many courtroom visits, appeals, and interference, the 20-month-long Microsoft-Activision merger could finally conclude next week.
Possibly the largest ongoing story over the past two years, the Microsoft-Activision merger may finally have a light at the end of the tunnel. A source close to Microsoft’s inner workings told The Verge on Friday that they’re going to attempt to finalize the $68 billion dollar deal by October 13, ending the two-year saga that started after massive allegations were made towards the “toxic work culture” Blizzard Entertainment allegedly harboured at their offices.
The last update on the Microsoft-Activision deal was the massive court case won against the FTC in July. The FTC had initially filed an appeal on the merger and had been declined, marking a massive win for Microsoft and those in favour of the merger. After that victory, both parties agreed to extend the deadline for the merger until October 18, hoping the UK watchdog, the Competition and Markets Authority (CMA), would fall in line also. At the time of the extension, both Microsoft and Activision have agreed to litigation that says, “Both parties have agreed that the deal termination fee is not subject to any condition other than failure to close.”
The kicker here is the Microsoft-Activision merger could really do damage to Microsoft’s war chest if the deal doesn’t close by October 18. The litigation filed after the FTC was denied an appeal could potentially cost Microsoft a cool $4.5 billion if the deal fails to reach a conclusion by October 18. The CMA recently weakened their stance due to Microsoft transferring the cloud gaming rights for current and new Activision Blizzard games to Ubisoft, which was their main argument against the merger in the first place.
CEO of the CMA, Sarah Cardell, said, “The CMA’s position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved. In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns,” but lambasted Microsoft for not proposing these remedies earlier.
While the CMA has concluded the transfer of cloud gaming rights to Ubisoft resolves their initial concerns of stifling competition, a consultation on the proposed remedies was opened and had a closure date of today, October 6. Although the FTC was recently denied their appeal in July, they’ve recently filed another appeal with the Ninth Circuit Court of Appeals, with a decision due in December.
While the Microsoft-Activision deal beelines towards a conclusion, it remains to be seen whether the deal will still close considering the recent FTC appeal. CGMagazine will keep readers updated with future updates on this ongoing battle.
