CMA’s Core Claim Against Microsoft X Activision Blizzard Acquisition Under Question As Nvidia Backs the Merger

The legalities are tightening up regarding the recent Microsoft-Activision deal. Since the multi-billionaire conglomerate started discussions regarding them acquiring Activision and Blizzard, hurdles one after the other found their way. Sony opposed the idea pointing out various factors that reportedly may affect them.

But the current roadblock for Microsoft is in the European lands. The CMA is currently opposing the merger, which has caused more delays. Amidst these debacles, Nvidia has become an ally of Microsoft.

Nvidia backs Microsoft; Will cloud gaming be really affected by the merger?

Microsoft’s acquisition of Activision Blizzard is currently at a roadblock. It faced rejection and denial from CMA who stated that this action was in the best interest of cloud gaming. For clarity, cloud gaming is the method in which games are run through remote servers directly to an individual’s system. This has been a trend for many years and is a well-demanded service.

Thus, CMA stated that the Microsoft-Activision deal will pose quite a threat to this. But, interestingly, Nvidia, one of the biggest players in the cloud gaming market came to back Microsoft. They turned the best ally for Microsoft after giving an official statement through their Twitter handle.

They were seen voicing against what CMA was stating. The Tweet read that the cloud gaming services would be able to access more gaming catalogs if this merger goes through, thus backing Microsoft and making CMA’s reason quite confusing. Moreover, Nvidia hopes that the legalities that are hindering the acquisition get over soon so that the merger can happen.

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This is an interesting stand by Nvidia, especially during the time when cloud gaming became the spike that popped the tires of the deal. This support was taken as evidence by Lulu Cheng Meservey, the Chief Communications Officer at Activation Blizzard.

She stated that the very reason through which CMA put a halt to the acquisition was under question with this very support. Meservey reiterated how cloud gaming, which was the very tool used by CMA to point out the potential dangers of the acquisition is actually quite not right. She talked about how cloud gaming companies see the merger in a positive light and how they expect this to ‘alter the future’.

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A reply from the CMA is yet to be seen. Till then Microsoft and Activision Blizzard would strive to make the dream deal happen.