Microsoft and Activision's Acquisition Saga: A Countdown to Completion

The past week has seen significant developments in the Microsoft-Activision acquisition saga. Despite attempts to explore other topics, this deal remains the focal point of discussion in the gaming industry. To provide clarity, we'll delve into the recent events and insights from analysts using a Q&A format. A US District Court judge denied the Federal Trade Commission's preliminary injunction against Microsoft's acquisition of Activision Blizzard, allowing the transaction to proceed in the US before the July 18 deadline. Following this, Microsoft and the UK's Competition Markets Authority announced new proposals to address concerns, requesting a pause in the appeals process. The FTC then filed an appeal, which was later rejected, and Nasdaq announced it would remove Activision Blizzard from its indexes due to the high probability of the acquisition's completion. Analysts believe the deal is likely to close, with Microsoft and Activision Blizzard pushing forward. The UK's regulator extended the deadline for its final decision, suggesting a new deadline of August 29. Experts note that the FTC's appeal is unlikely to succeed, given its poor track record and the inability to present new evidence. Microsoft may offer behavioural accommodations, such as restricting Call of Duty on Xbox Cloud Gaming in the UK, to appease the CMA. The acquisition's completion could have implications for future deals and Microsoft's reputation, but analysts expect a resolution that satisfies all parties involved.