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Microsoft say Activision Blizzard deal block is the company's "darkest day in UK in four decades"

Published: 14:00, 27 April 2023
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Microsoft have issued an aggressive statement after CMA block, making it clear how unhappy they are with the decision
Microsoft have issued an aggressive statement after CMA block, making it clear how unhappy they are with the decision

Microsoft's vice president Brad Smith says the decision to block the Activision Blizzard deal is bad for Britain and Microsoft's darkest day in the company's four decades working in the country. 

Yesterday, UK's competition regulatory body "The Competition and Markets Authority" (CMA) officially prevented Microsoft from buying Activision Blizzard for $69 billion. In a surprising move, CMA blocked the merger over cloud concerns , to which, Microsoft reacted aggressively, stating that they'll appeal the decision and won't give up on closing the acquisition.

In a statement to BBC, Microsoft's vice chair and president Brad Smith said that the decision to block the merger is "bad for Britain" and marked Microsoft's "darkest day" in the company's four decades working in the country.

Furthermore, Microsoft's president also said that Microsoft play a vital role in defending the nation from cybersecurity threats and supporting business and non-profits, which sounds like a message to the UK government.

The decision to block the merger basically means that Microsoft will not be able to close the deal globally unless they decide to stop operating in the UK, which is highly unlikely to happen. CMA have stated that preventing big companies from "merging with commercial interests" is best for the people in the UK.

Microsoft will, obviously, appeal the decision and Activision Blizzard too said they will fight for the merger until the end. It's safe to say now that the deal hinges on EU regulators' approval. If it happens that the EU and other regulators like China also block the merger, Microsoft could probably walk away from the deal entirely. 

Microsoft and activision blizzard If the deal goes through, Microsoft and Xbox would own Call of Duty, Diablo, Overwatch and more popular IPs

Microsoft also has problems with US regulator FTC, who sued the company to try and block the merger. The decision from CMA certainly won't help their cause to try and defend the deal in the US so buckle up, this will continue to be one frustrating and long ride.

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