The UK has recommended a second inquiry into the Activision acquisition
PlayStation President Jim Ryan traveled to Brussels, the capital of Belgium. to discuss business concerns with the EU involving Microsoft and Activision Blizzard. A similar step was taken by Google.
The information was published by VGC, where it was revealed that Ryan personally talked to the representatives of the European Union about the billion-dollar deal between the two companies. In January of this year, Microsoft announced the purchase of Activision Blizzard for $68.7 billion. The cost corresponds to about $371 billion at current prices.
The move by the PlayStation president will be another in a series of attempts by Ryan to raise concerns about the business. On other occasions, he has said that this negotiation is harmful to the entire gaming industry..
Google shares the PlayStation president’s concerns. Sources at VGC said that company representatives have gone to the EU personally on this issue, showing concern that this type of negotiations is causing.
Uncertainty about the conclusion of the transaction
The announcement of Microsoft’s acquisition of Activision Blizzard doesn’t mean the deal is actually sealed. This is because a business of this size goes through a number of procedures, including a government analysis of the feasibility of this type of acquisition.
Earlier this month, for example, the UK’s Competition and Markets Authority (CMA) already raised concerns about the company’s acquisition. They claimed that Activision Blizzard’s acquisition could affect the competitiveness of the industry.
Thus, the government recommended that the negotiations between the companies go into a new phase of the investigation. The only way to avoid this is for companies to submit “acceptable initiatives” that force the regulatory body to accept assurances that such a situation will not occur.
Despite a number of factors weighing against the deal, Microsoft CEO Satya Nadella recently said he is confident the Activision acquisition will be approved.
“Of course, any acquisition of this size will be subject to thorough investigation, but we are very confident that we will succeed,” Nadella said in an interview with Bloomber Television.
Unfortunately for Microsoft’s CEO, this optimism is not shared by the company’s investors. Activision’s shares were recently trading 20% below their initial offer price.
Microsoft CEO is confident of approval of Activision acquisition
Activision Blizzard’s acquisition is undergoing a series of regulatory investigations