The updated deal has supposedly addressed recent CMA concerns surrounding cloud gaming with the regulator saying: “The sale of Activision’s cloud gaming rights to Ubisoft substantially addresses previous concerns and opens the door to the deal being cleared.”
Earlier this year, the CMA blocked Microsoft from acquiring Activision, prompting a furious response from the former.
In an interview with the BBC, Brad Smith, Microsoft’s president said yesterday was “probably the darkest day in our four decades in Britain”.
The updated structure, though, looks set to be approved, even when the CMA announced last week that Ofcom has referred the public cloud infrastructure services market to them for an independent market investigation.
“In the complex realm of investor confidence, the CMA's impact on blocking deals is a double-edged sword. While it may face criticism for hindering potential economic benefits, it plays a vital role in fostering a competitive space,” said Claire Trachet. M&A expert and CEO/Founder of business advisory Trachet.
“With the M&A sector having to navigate a challenging period as a result of various macroeconomic challenges, it is essential for the CMA to carefully consider the outcome that will impact investor confidence and future companies looking to make deals in the UK.”
If the CMA does approve the acquisition, it will be positive news for the UK’s M&A sector, which has seen record fall. UK involvement fell to a 14-year low in 2023 to a total value of £144.7 billion.
This is down from last year by 45%, the lowest year-to-date total since 2009 amid the turmoil of the global financial crisis.
“With some research reporting that increased support into the M&A sector could quadruple its value to $4 trillion, the decision to potentially reverse the blocking of the Microsoft-Activision deal will directly impact the attractiveness of the UK as an M&A destination,” Trachet added.
