Microsoft is currently working to acquire Activision Blizzard for $95.00 per share in an all-cash transaction valued at $69 billion, including Activision Blizzard’s net cash. When the transaction completes and the deal close, Microsoft will become the world’s third-largest gaming company by revenue, followed by Sony and Tencent.
Based on a leaked document acquired by Reuters, European Union has sent out a questionnaire of one hundred questions to game developers, publishers, and distributors who would be directly affected by the deal if it is approved.
Microsoft officially filed its case for Activision Blizzard with the Union this Friday. The Union has given a provisional deadline of November 8 to either clear all the transactions by the said date or choose to undergo a detailed investigation.
As reported, the questionnaire allegedly asks whether Microsoft will be encouraged to deny competitors access to Activision Blizzard’s series to remain dominant in console and PC spaces. Remember that significant intellectual properties produced by Activision Blizzard include Call of Duty, Spyro, Heroes of the Storm, Overwatch, and Candy Crush Saga.
During the ‘phase I’ review, the European Commission will analyze this deal over the upcoming weeks and examine whether Microsoft will receive a competitive advantage if it acquires Activision Blizzard’s 361 million monthly active users. Moreover, the regulators are also being inquired whether the deal will impact their bargaining power when selling their games on Xbox consoles and Microsoft’s Game Pass subscription service.
The competition watchdog said: “Although it is recognized that some PlayStation users could decide to migrate to Xbox in the event that Activision Blizzard games (especially Call of Duty) become exclusive to the Microsoft ecosystem, Brazil’s Administrative Council for Economic Defense (CADE) does not believe that such a possibility represents, in itself, a risk to competition in the console market as a whole.”
Do you think rivals should have been asked for their take on Xbox Activision Deal, or was it a lousy move overall? Do let us know your opinion in the comments section below!
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