Microsoft and Activision have responded to the CMA decision to block their deal, swearing to appeal and do everything they can to get the deal to push through.
Microsoft President Brad Smith shared this message on Twitter:
“We remain fully committed to this acquisition and will appeal. The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.
We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies.
We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”
Lulu Cheng Meservey, who is Chief Communications Officer of Activision Blizzard, shared this statement on Twitter:
“The CMA’s report today is a major setback for the UK’s ambitions to be a tech hub, and we will work with Microsoft to reverse it on appeal.
This report is also a disservice to UK citizens, who face increasingly dire economic prospects, and we will need to reassess our growth strategy in the UK.
Global innovators large and small will take note that – despite all its rhetoric – the UK is closed for business.”
Bobby Kotick also shared a letter for Activision Blizzard employees and made it public. We will reproduce the contents of the letter below, but he has softer words to the employees about the deal.
To sum Kotick’s message, “This isn’t the news we wanted – but it is far from the final word on this deal.”
Kotick was perhaps mindful of his UK employees when he reiterated the company’s hopes for a mutually beneficial relationship with the business region.
Surprisingly, Kotick also has this nuanced take on this latest setback:
“This merger is a complex process, and I know I’m not the only one frustrated by the hurdles and delays. We’re accustomed to a company culture that moves quickly to accomplish big goals, so it’s tough when we can’t close things out at our usual energetic pace. We’ll keep pressing our case, because we know that this merger will benefit our employees, the broader UK tech workforce, and players around the world.”
Microsoft and Activision seem determined to see this deal push through for the long haul. There’s no doubt the consequences of their failure to get it done will be catastrophic, not only for Microsoft’s and Activision’s business, but for Activision Blizzard King’s employees, who know this as the opportunity to oust Bobby Kotick from the company leadership, and make recognition of their existing and potential unions possible.
This clearly isn’t the final chapter of this story, so keep following GameRanx for the latest news on the Microsoft – Activision deal. You can read the full text of Bobby Kotick’s letter to employees below.
“Team,
Today, the Competition and Markets Authority (CMA), a regulatory agency in the UK, decided not to approve our merger with Microsoft. This isn’t the news we wanted – but it is far from the final word on this deal.
Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal. We’re confident in our case because the facts are on our side: this deal is good for competition.
The UK hopes to grow its leadership position in technology, and a combined Microsoft-Activision would accomplish exactly that. At a time when the fields of machine learning and artificial intelligence are thriving, we know the UK market would benefit from Microsoft’s bench strength in both domains, as well as our ability to put those technologies to use immediately. By contrast, if the CMA’s decision holds, it would stifle investment, competition, and job creation throughout the UK gaming industry.
This merger is a complex process, and I know I’m not the only one frustrated by the hurdles and delays. We’re accustomed to a company culture that moves quickly to accomplish big goals, so it’s tough when we can’t close things out at our usual energetic pace. We’ll keep pressing our case, because we know that this merger will benefit our employees, the broader UK tech workforce, and players around the world.
I’m going to do everything I personally can to advocate for us and help regulators understand the competitive dynamics in our industry. What gives me confidence is that, whether on our own or united with another company, we are one of the strongest companies in our industry, poised for continued growth, and building on our incredible IP.
I appreciate your continued hard work and focus, and for continuing to connect and engage our players around the world. This is the best time to be in our field, and you all represent the best of our industry. We’ll be sure to keep you updated on next steps as they happen.
With appreciation,
Bobby”
