Microsoft’s $69 Billion Activision Deal Likely to Get EU Antitrust Nod

Microsoft Corp (MSFT.O) is anticipated to safe EU antitrust approval for its $69 billion (roughly Rs. 5,68,094 crore) acquisition of Activision (ATVI.O) with its provide of licensing offers to rivals, three individuals conversant in the matter stated, serving to it to clear a serious hurdle.

Microsoft introduced the Activision bid in January final yr, its largest ever, to tackle leaders Tencent (0700.HK) and Sony (6758.T), within the booming video gaming market and to enterprise into the metaverse which is digital on-line worlds the place individuals can work, play and socialise.

The European Commission, which is scheduled to determine on the deal by April 25, isn’t anticipated to demand that Microsoft promote property to win its approval, the individuals stated.

In addition to the licensing offers for rivals, Microsoft may additionally have to provide different behavioural cures to allay issues of different events than Sony, one of many individuals stated. Such cures sometimes refer to the long run conduct of the merged firm.

Activision shares, which jumped 1.8 p.c in pre-market buying and selling after the Reuters story was revealed, had been up 2.6 p.c in late commerce.

Microsoft President Brad Smith final month stated the U.S. software program group was prepared to provide rivals licensing offers to tackle antitrust issues however it could not promote Activision’s profitable “Call of Duty” franchise.

Smith stated it was not possible or practical to assume that one recreation or one slice of Activision may be carved out and separated from the remaining.

The EU competitors enforcer declined to remark.

Microsoft stated it was “committed to offering effective  and  easily  enforceable solutions  that address the European Commission’s concerns.”

“Our dedication to grant long-term one hundred pc equal entry to  Call of Duty to Sony, Steam,  NVIDIA and others  preserves the deal’s benefits to gamers and developers and increases competition in the market,” a Microsoft spokesperson stated.

Last month, Microsoft stated it had signed 10-year licensing offers with Nintendo (7974.T) and Nvidia (NVDA.O) that can convey Call of Duty to their gaming platforms, with the agreements conditional on a inexperienced mild for the Activision deal.

The deal faces regulatory headwinds in Britain, the place the UK competitors company has urged that Microsoft divests Call of Duty to tackle its issues whereas the U.S. Federal Trade Commission (FTC) has requested a choose to block the deal.

© Thomson Reuters 2023