All posts tagged: MicrosoftActivision

FTC seeks pause on Microsoft-Activision deal amid layoff controversy

FTC seeks pause on Microsoft-Activision deal amid layoff controversy

Just a week following Microsoft’s announcement of nearly 2,000 layoffs within its gaming division, the Federal Trade Commission has raised concerns over Microsoft’s adherence to its initial promises regarding the operation of Activision Blizzard post-acquisition, according to a recent report by Engadget. The FTC’s apprehensions were formalized in a complaint submitted to a federal appeals court on Wednesday, calling for a temporary halt on Microsoft’s acquisition of Activision Blizzard amid ongoing investigations into potential antitrust violations. Microsoft had previously assured the FTC that the acquisition of Activision Blizzard would be managed as a vertical integration, implying that layoffs would be unnecessary due to the absence of overlapping roles. However, the recent job cuts announced on Jan. 30, which impacted employees across Activision Blizzard, ZeniMax, and Xbox, have sparked controversy. Microsoft cited “areas of overlap” between itself and Activision Blizzard as the reason for the layoffs, a statement that the FTC claims contradicts Microsoft’s earlier representations to the court. The FTC’s complaint highlights the contradiction between Microsoft’s initial assurances and its recent actions, stating, “Microsoft’s recently-reported …

Microsoft-Activision: UK looks poised to clear restructured deal

Microsoft-Activision: UK looks poised to clear restructured deal

The UK’s competition watchdog has signalled it’s preparing to greenlight a restructured proposal for Microsoft to acquire Activision. In an update on its ongoing assessment today it said the deal “makes important changes that substantially address the concerns it set out in relation to the original transaction earlier this year”. The Competition and Markets Authority (CMA) blocked the $68.7 billion gaming mega-merger back in April — on the grounds that it would substantially weaken competition in the cloud gaming market — but last month opened a fresh investigation into a restructured deal proposal Microsoft had submitted for review, while also simultaneously confirming its April decision to block the original merger proposal. The restructured deal proposes the sale of Activision’s cloud gaming rights to a rival games maker, Ubisoft — which the CMA has now suggested “substantially addresses previous concerns and opens the door to the deal being cleared”. “In particular, the sale of Activision’s cloud streaming rights to Ubisoft will prevent this important content — including games such as Call of Duty, Overwatch, and World of Warcraft …

UK’s CMA confirms decision to block Microsoft-Activision but opens fresh probe of restructured deal proposal

UK’s CMA confirms decision to block Microsoft-Activision but opens fresh probe of restructured deal proposal

The UK’s antitrust regulator has confirmed its April decision to block the $68.7BN Microsoft-Activision gaming mega-merger — rejecting arguments by Microsoft that it should overturn its original prohibition because of developments since the original decision. However in a simultaneous announcement today the Competition and Markets Authority (CMA) has opened a new investigation into a restructured proposal Microsoft has submitted for review. Under the restructured proposal the tech giant would not acquire the cloud streaming rights to all current and future Activision games released during the next 15 years (excluding in the European Economic Area (EEA)). Instead the cloud streaming rights will be divested to Ubisoft prior to Microsoft’s acquisition of Activision. In a statement Sarah Cardell, the CMA’s chief executive, described the revised proposal as “substantially different” compared to the deal the regulator has rejected: Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. As part of this new deal, Activision’s cloud streaming rights outside of the EEA will be sold to a rival, …

UK narrows antitrust probe of Microsoft-Activision

UK narrows antitrust probe of Microsoft-Activision

The UK’s antitrust watchdog has narrowed its probe of Microsoft’s $68.7 billion bid for video game giant, Activision Blizzard, it said today. In February, the Competition and Markets Authority (CMA) provisionally concluded the merger “could harm U.K. gamers” through higher prices, fewer choices, or less innovation. Today it’s updated that position — saying new evidence “provisionally alleviates” concerns in relation to the supply of games consoles in the UK. However a previously stated provisional finding — that the deal raises concerns in relation to cloud gaming — remains unaffected; and the investigation continues, with a final report due from the watchdog by April 26, 2023. “The CMA has received a significant amount of new evidence in response to its original provisional findings. Having considered this new evidence carefully, together with the wide range of information gathered before those provisional findings were issued, the CMA inquiry group has updated its provisional findings and reached the provisional conclusion that, overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the …