There is no shortage of news reports surfacing online over the latest Microsoft bid. When Microsoft unveiled its intentions to purchase Activision Blizzard, it came with a massive check. However, the actual road to acquiring this company has been anything but smooth. Instead, Microsoft has been fighting to get approval from regulators as they attempt to go through the purchase. One of the significant regulators still weighing out their decision is the CMA. While initially, it looked as if the CMA was siding with Sony over this deal, a recent math change has altered their findings to favor Microsoft.
For a bit more backstory without getting too deep into the weeds here, the CMA was mainly focused on Call of Duty. This is the biggest franchise in the deal, and the thought process for the CMA was that Microsoft intended to make Call of Duty exclusive. With this hit FPS being ripped away from Sony platforms, it would hurt competition within the industry. Meanwhile, Microsoft has taken the approach that they have no intentions of pulling Call of Duty away from any platform. Instead, they have sought to bring this franchise to as many platforms and cloud-based services as possible. Even legal contracts were written to ensure that Call of Duty would land on platforms outside Microsoft’s for at least ten years if this deal goes through.
Initially, the CMA found that there would be an attempt to make Call of Duty exclusive but failed to look at the right numbers during their investigation. It was only after Microsoft called out on the figures CMA was looking at that the regulator realized that taking Call of Duty away from competitors wouldn’t actually make financial sense for Microsoft. As a result, the CMA has sided more with Microsoft and has been less concerned with this IP becoming exclusive. But that still hasn’t swayed Sony from still requesting this deal be blocked.
Now in response to the CMA’s recent findings, Sony has stated that the CMA’s reversal of its position on its console’s theory of harm is surprising, unprecedented, and irrational. The eleven-page document goes on to further express the CMA change its decision and block the deal to ensure competition remains fair within the industry. But right now, the decision has yet to be made. We know that the CMA has until the end of this month to make their final decision which will either grant this purchase to go through for Microsoft or if it will be shot down.
