Microsoft’s $69 Billion Takeover of Call of Duty Maker Activision Expected to Secure EU Antitrust Approval


Microsoft Corp (MSFT.O) is expected to secure EU antitrust approval for its $69 billion (roughly Rs. 5,68,094 crore) acquisition of Activision (ATVI.O) with its offer of licensing deals to rivals, three people familiar with the matter said, helping it to clear a major hurdle.

Microsoft announced the Activision bid in January last year, its biggest ever, to take on leaders Tencent (0700.HK) and Sony (6758.T), in the booming video gaming market and to venture into the metaverse which is virtual online worlds where people can work, play and socialise.

The European Commission, which is scheduled to decide on the deal by April 25, is not expected to demand that Microsoft sell assets to win its approval, the people said.

In addition to the licensing deals for rivals, Microsoft may also have to offer other behavioural remedies to allay concerns of other parties than Sony, one of the people said. Such remedies typically refer to the future conduct of the merged company.

Activision shares, which jumped 1.8 percent in pre-market trading after the Reuters story was published, were up 2.6 percent in late trade.

Microsoft President Brad Smith last month said the U.S. software group was ready to offer rivals licensing deals to address antitrust concerns but it would not sell Activision’s lucrative “Call of Duty” franchise.

Smith said it was not feasible or realistic to think that one game or one slice of Activision can be carved out and separated from the rest.

The EU competition enforcer declined to comment.

Microsoft said it was “committed to offering effective  and  easily  enforceable solutions  that address the European Commission’s concerns.”

“Our commitment to grant long-term 100 percent equal access to  Call of Duty to Sony, Steam,  NVIDIA and others  preserves the deal’s benefits to gamers and developers and increases competition in the market,” a Microsoft spokesperson said.

Last month, Microsoft said it had signed 10-year licensing deals with Nintendo (7974.T) and Nvidia (NVDA.O) that will bring Call of Duty to their gaming platforms, with the agreements conditional on a green light for the Activision deal.

The deal faces regulatory headwinds in Britain, where the UK competition agency has suggested that Microsoft divests Call of Duty to address its concerns while the U.S. Federal Trade Commission (FTC) has asked a judge to block the deal.

© Thomson Reuters 2023

After facing headwinds in India last year, Xiaomi is all set to take on the competition in 2023. What are the company’s plans for its wide product portfolio and its Make in India commitment in the country? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated – see our ethics statement for details.

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2023 hub.

Articles You May Like

Elon Musk threatens to ban Apple devices from his companies over OpenAI partnership
Microsoft is outsourcing its best AI, tech CEO says — and that’s good news for Google
Samsung Galaxy S24 FE Spotted on Geekbench With Exynos 2400 Chipset
Acer ALG Gaming Laptop With 12th Gen Intel Core i5 CPU, Nvidia GeForce RTX 3050 Launched in India
YouTube Reportedly Testing New Method to Disrupt Ad Blockers Amid Ongoing Crackdown