Microsoft’s attempt to acquire Activision Blizzard for $68.7 billion has been blocked by the United Kingdom’s Competition & Markets Authority (CMA), but Microsoft’s Gaming CEO, Phil Spencer, believes the deal will go through in the future. In an interview with Kinda Funny, Spencer said Xbox is working to appeal the decision, and it continues to work with the European Union and the FTC to get the deal done.
The CMA’s Decision and Spencer’s Response
The CMA rejected the deal over concerns about the cloud gaming market, which Spencer finds puzzling. According to Spencer, the cloud gaming market is in its infancy, so the decision to block the deal based on this market is premature.
“The CMA decision was disappointing. We’ve been talking to that group for coming up on a year. They defined a market of cloud gaming that, in my mind, doesn’t really exist yet today.”
Spencer also commented on Redfall’s bad reviews and admitted that it was disappointing, but he believes it’s not reason enough to demotivate the team.
Spencer’s Belief on Activision Blizzard
Activision Blizzard King is not Microsoft’s strategy, but it can accelerate its strategy. Spencer believes the merger will help Xbox speed things up even though it is not necessary. In his memo to staff after the CMA’s decision, Spencer said Microsoft would press ahead even if the deal does not go through.
Next Steps and Future Prospects
The EU will make its decision on the deal by May 22, while the FTC scheduled its first hearing in August 2023, indicating that there’s a long way before the case can settle. Spencer believes the deal will go through eventually, and Xbox remains optimistic in its appeals and applications in the remaining jurisdictions where it seeks approval.
Conclusion
Microsoft’s plan to acquire Activision Blizzard has hit a snag following the CMA’s decision to reject the deal. However, Xbox’s gaming CEO, Phil Spencer, believes the deal will go through sometime in the future. The possibility of the deal accelerating Xbox’s strategy and the premature decision to reject the deal based on the relatively new cloud gaming market were some of the themes that Spencer tackled in the Kinda Funny interview and the memo he sent to his staff.
