Experts Believe UK Regulator's Objection to Microsoft's Acquisition of Activision Blizzard Signals Approval

Following the UK Competition and Markets Authority's provisional findings on the potential anti-competitive effects of Microsoft's acquisition of Activision Blizzard, which included a suggestion that the companies could alleviate concerns by restructuring the publisher, Wedbush analysts Nick McKay and Michael Pachter issued a statement to investors suggesting that the deal is nearing approval. The analysts view the UK's move as a sign that the regulator acknowledges its weak legal position. They believe that the US Federal Trade Commission had reached a similar conclusion and is attempting to secure concessions from Microsoft by being the first to file a lawsuit. The UK regulator, by proposing stringent structural remedies, is positioning itself to take the lead in this matter. Instead of breaking up the business, the analysts anticipate that Microsoft will agree to a set of behavioural remedies, such as maintaining the availability of Call of Duty on non-Microsoft platforms for a specified period. However, they do not think Microsoft would agree to make Activision games available on competing cloud gaming services. Despite potential disagreements, the analysts do not expect this to be a significant obstacle and predict that Microsoft's acquisition of Activision will be completed by mid-May.