• Loading stock data...
Wednesday, July 17, 2024
Join us this September for Tuned In Request to Attend

Microsoft’s Activision Blizzard Takeover Faces In-Depth Probe

  • The Competition and Markets Authority has given Microsoft a deadline of Sept. 8 to address its concerns.
  • The pending deal would make Microsoft the world’s third-largest gaming company by revenue.
Activision Blizzard makes games like Call of Duty and was acquired by Microsoft.
Shutterstock

Microsoft’s deal to acquire Activision Blizzard for $68.7 billion is facing a potential in-depth review by the Competition and Markets Authority, a U.K. antitrust watchdog. 

The deal — first announced in January — could receive approval by the CMA if Microsoft offers remedies to concerns over decreased competition in gaming consoles. 

  • There are also concerns over multi-game subscription services and cloud gaming markets.
  • The CMA has given Microsoft a deadline of Sept. 8 to address its concerns.
  • The pending all-cash deal would make Microsoft the world’s third-largest gaming company by revenue.

In July, Microsoft submitted “Second Request” documents to the FTC regarding its deal for Activision Blizzard. The government agency can ask the parties to alter the deal, opt not to object, or issue a court order seeking to block it.

Lackluster Earnings 

Both Microsoft and Activision Blizzard took a hit in their last earnings reports following a surge of interest and spending at the height of the pandemic. The gaming market has dealt with constraints, including the ongoing semiconductor shortage and supply chain disruptions. 

Activision Blizzard reported $1.64 billion in second-quarter revenue — surpassing Wall Street estimates of $1.59 billion but down from $2.3 billion for the same period last year.

Microsoft generated $51.9 billion in revenue in fiscal Q4, its slowest revenue growth since 2020. Its gaming revenue fell by $259 million during the quarter, while its Xbox content and services segment reported a 6% decrease in revenue compared to Q4 2021.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

The Mississippi Department of Human Services on Monday sued retired NFL quarterback Brett Favre along with several other people and businesses to try to recover millions of misspent welfare dollars that were intended to help some of the poorest people in the U.S.

Judge in Mississippi Welfare Case Boots Brett Favre’s Lead Lawyer

The judge wrote he had a ‘pattern and practice of delicate deception.’
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
April 13, 2024; Columbus, Ohio, USA; Ohio State Buckeyes wide receiver Emeka Egbuka (2) catches a pass for the scarlet team while defended by cornerback Jordan Hancock (7) of the grey team during the first half of the LifeSports Spring Game at Ohio Stadium on Saturday.

As NIL Turns Three, Collectives and Football Still Control the Industry

Collectives dominate NIL, and football makes up most of collective budgets.
Sponsored

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
podcast thumbnail mobile
Front Office Sports Today

A First Hand Report of the Copa America Chaos

0:00

Featured Today

Jan 7, 2024; Nashville, Tennessee, USA; Jacksonville Jaguars wide receiver Calvin Ridley (0) reacts after scoring a touchdown against the Tennessee Titans during the first half at Nissan Stadium.
July 14, 2024

Without Hard-Line Bans, Pro Athletes and Personnel Will Keep Betting on Sports

Penalties often aren’t stringent or consistent enough to deter banned behavior.
Oct 2, 2021; Miami Gardens, FL, USA; NFL commissioner Roger Goddell speaks during the Don Shula Celebration of Life at Hard Rock Stadium.
July 13, 2024

The NFL Is Confident It Can Overturn the Sunday Ticket Verdict

The league may have good reason to believe it can win.
July 8, 2024

NFLPA Report Cards Have Become the ‘Talk of the Locker Room’ Across..

NFLPA report cards have become the ‘talk of the locker room.’

Angel City FC Sale Official at Record $250 Million Valuation

Disney CEO Bob Iger and wife Willow Bay now control the club.
July 1, 2024

Bobby Bonilla Day: A Look at MLB’s Top Deferral Deals and Ohtani’s Pact

Well beyond Bobby Bonilla, many current and former MLB stars have their own lucrative deferrals.
July 2, 2024

NBA and NHL Free Agency: Billions in New Deals Despite Economic Unrest

Rising revenues and salary caps are helping fuel a run of historic contracts.
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
June 24, 2024

Tiger’s Golf League Hits $500 Million Valuation Before First Swing

TGL will begin play in January 2025.
June 13, 2024

The ‘Big’ in Big 12 Could Soon Be Replaced With a Sponsor’s Name

Allstate is said to be in discussions about a deal with the Big 12.
June 13, 2024

Everything You Need to Know About the Schism Rocking Competitive Eating

The business story about hot dogs that you never knew you needed.
June 12, 2024

Saudi Arabia’s Next Big Sports Target: Boxing, With Joint Venture Worth $5B

The Public Investment Fund of Saudi Arabia is focusing on boxing as its next large-scale sports target.