The UK’s Competition and Markets Authority (CMA) blocked the purchase of Activision Blizzard and many believe Microsoft no longer has an option to complete the deal. Analyst firm DFC Intelligence thinks otherwise, believing the company still has a chance to close the acquisition.
He warns, though, that the process won’t be simple or short and that there’s a chance Microsoft may decide to walk away from the purchase. This is because the Capital Markets Authority and other regulators are likely to toughen their demands. So Microsoft will have to forgo a few more concessions.
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Microsoft still has a chance, but it won’t be easy
According to DFC Intelligence, CMA now has an open door to demand more from Microsoft. The company believes the tech giant can only win if it agrees to give up more ground.
However, this is a double-edged sword, as regulators can demand so many concessions that Microsoft may eventually lose interest in purchasing as such. For this reason, he believes that it will be a long legal battle and that negotiations are very likely to continue until 2024, at least in the case of the Capital Markets Authority.
DFC Intelligence believes the deal will last as long as Microsoft is willing to make more concessions to satisfy regulators. But at what point does the engagement override the strategic goals of making the acquisition in the first place?
“The CMA’s acceptable remedy is likely to limit Microsoft’s ability to use Game Pass as a gateway to other services,” the analyst firm said. “There will be some point at which Microsoft will withdraw rather than commit.”
At the end of May, the European Commission will announce its verdict in the case. This will be very important to the future of the acquisition, which has yet to face opposition from the US Federal Trade Commission (FTC).
In case you missed it: Microsoft criticizes the UK for blocking its purchase; The Prime Minister refutes his arguments
Find all the news about the Activision Blizzard purchase at this link.
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