Microsoft’s Gaming Empire Takes a Massive Hit As CMA Extends Block on Activision-Blizzard Merger, Which Owns ‘Call of Duty’, for 10 Years

CMA is tightening its grip on Microsoft and is choking out the possibilities of the $69 billion deal. One of the most monumental decisions in the gaming industry in recent times has been the Microsoft x Activision Blizzard acquisition. This merger will result in dynamic changes in the gaming market. But since the announcement, the acquisition plans have been running into roadblocks one after the other.

The recent of which is the UK restrictions. Now, more pressure is added to the legal battle as a decade-long restriction has been imposed on Microsoft.

CMA puts up a 10-year block on the Microsoft Activision deal

Activision Blizzard is a very prominent figure in the gaming market. They are the powerhouses behind the popular Call of Duty series. Thus, when news about Microsoft acquiring them popped up, many leaders in the market felt the pressure. First, it was Sony who was voicing concerns regarding the issue.

But now the biggest roadblock in the merger is from UK’s Competition and Markets Authority. The cause stated by the CMA regarding the imposed pause on the merger is based on cloud gaming. According to the authority, the merger will likely affect the cloud gaming market in a negative sense. Though companies like Nvidia have extended support to Microsoft, CMA has now taken a drastic step and has put a 10-year lock on the merger.

According to the ‘Anticipated acquisition by Microsoft of Activision Blizzard, Inc ‘ reports dug up by ResetEra user Idas, this decision is keenly underlined. On page 336, it is mentioned that the 10-year restriction is imposed on both parties, that is, Mircosoft and Activision Blizzard cannot engage in a merger with each other during this time frame.

There were other claims as well stated in the report. According to these, CMA has a strong assumption that Microsoft will not be investing in Cloud gaming in the future. This would exert tensions in the cloud gaming business in the global markets.

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

The US Federal Trade Commission (FTC) has still not made a final decision regarding this expensive merger. From the looks of it, the winds are currently not in favor of Microsoft. The legal battle for making this dream acquisition will surely be pursued to the very end by the company. There are lots of plans by the multinational tech corp for Call of Duty and other factors that Activision Blizzard brings to the table.

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Only time will tell whether Microsoft can overcome these hurdles and make such a massive acquisition a reality.