Microsoft’s proposed $68.7bn (£50.5) acquisition of the troubled Call of Duty and Candy Crush gaming company Activision Blizzard is being investigated.
If regulators approve the deal, Microsoft would become the world’s third-largest gaming company by revenue; however, several competition authorities are currently investigating it.
According to Microsoft CEO Satya Nadella, the all-cash acquisition would allow the Xbox manufacturer to enter the mobile gaming sector and “play a key role in the development of metaverse platforms.”
If regulators approve the deal, Microsoft would become the world’s third-largest gaming company by revenue; however, several competition authorities are currently investigating it.
The Competition and Markets Authority (CMA) stated that it will engage with its international counterparts “as appropriate” and will aim to issue a Phase 1 investigation decision within forty working days, or by 1 September.
After Phase 1 of the investigation, the CMA will determine whether the merger may harm competition; if this is the case, Phase 2 must be initiated.
After allegations of widespread sexual harassment and other misconduct surfaced, Activision’s stock fell by nearly 40 percent from its all-time high from the previous year.
Microsoft stated that Activision CEO Bobby Kotick would remain in his position, despite staff calls for his resignation over his handling of the claims.
Activision stated that while its efforts to address the issues were ongoing, it had terminated or pushed out over 36 employees and disciplined 40 others.
Microsoft’s extensive game library was viewed as giving it an advantage over Sony, the maker of the PlayStation, a fierce console competitor.
In recent years, among its gaming investments was the $7.5 billion acquisition of Minecraft developer Mojang Studios.
