The EU seems ready for Microsoft to acquire Activision Blizzard, but there are still a few hurdles to overcome before this can happen.

 

 

Microsoft’s push to acquire Activision Blizzard appears to have taken a big step forward. The EU is reportedly likely to approve the monumental $68.7 billion takeover. The European Commission will make a decision on the Microsoft takeover later this year. In the meantime, there are still some major hurdles to overcome before the biggest merger in gaming history can go ahead.

Just over a year ago, Microsoft announced plans to acquire Activision Blizzard, which could have a profound impact on the games industry.

The acquisition would give Microsoft control of Call of Duty, a huge franchise that is consistently one of the best-selling games every year. The huge Warcraft, StarCraft, Diablo and Overwatch franchises would also be taken over by Microsoft. Along with big names like Spyro, Crash Bandicoot and Candy Crush. Regulators have understandably been concerned about the acquisition, as it is seen as a monopoly. One of the main concerns of the US Federal Trade Commission and the European Commission is that this move could effectively sabotage Microsoft’s Xbox console competitors by making these games exclusive.

According to several sources familiar with the matter, Microsoft’s agreements with Nintendo and Nvidia were convincing enough and are likely to allay EU antitrust concerns.

Microsoft recently signed 10-year agreements with Nintendo and Nvidia that will ensure that Call of Duty will be available on Nintendo consoles. They also guarantee that Call of Duty and Xbox PC games will be ported to Nvidia’s GeForce Now cloud gaming platform. This move directly addresses the antitrust concerns of regulators. It appears to have been a major factor in the deal.

The same 10-year Call of Duty deal was also offered to Sony. But Sony rejected the offer. It seems to have been a calculated move on their part. Accepting the deal would most likely help Microsoft’s case against regulators. However, Sony is in a difficult position when it comes to Call of Duty. PlayStation’s Call of Duty contract with Activision expires in 2024.

If Microsoft provides Call of Duty without Sony’s cooperation, it is uncertain whether Microsoft will decide to give PlayStation access to the series.

It was also recently reported that China will approve Microsoft’s acquisition. This was another important piece of the puzzle. That said, Microsoft is not out of the woods yet. The US Federal Trade Commission and the UK Competition and Markets Authority still have to be won over. These regulators have been particularly cautious about the deal. It remains to be seen whether Microsoft’s latest manoeuvres will be sufficient.

Source: Reuters