British Government Vetoes $69 Billion Purchase: A Breaking News Update
Microsoft’s Attempt to Buy Activision Blocked by UK Authorities
Microsoft’s proposed $69 billion acquisition of Activision, a US game company that developed and distributed popular games such as Call of Duty, Candy Crush, and World of Warcraft, has been blocked by the UK Competition and Markets Authority (CMA). The decision has disappointed Microsoft, with President Brad Smith stating that it was the “darkest” day for the company operating in the UK for 40 years.
Smith also expressed concern about the implications of this decision for future business opportunities in the UK’s technology sector. He said, “More than that, it is a bad decision for the UK. This decision has shaken our confidence in the future of business opportunities in the UK in the field of technology. People were surprised, disappointed and confidence in technology in the UK was deeply shaken.”
The CMA’s decision was based on concerns that Microsoft’s acquisition of Activision would harm competition in the cloud gaming market. The US tech company has been attempting to expand its gaming division, and the acquisition of Activision was seen as a way to further this goal. However, the CMA’s ruling has put a stop to this plan.
Smith believes that this decision sends a clear message that the EU is a more attractive place to do business than the UK. He warned that the technology sector in the UK is at risk of losing out to its European neighbors if regulations are not revised to better support investment in the sector.
The CMA’s decision to block Microsoft’s acquisition of Activision has disappointed many stakeholders in the technology sector. However, it remains to be seen whether this will prompt any changes to existing regulations. For now, Microsoft will need to look elsewhere to expand its gaming division in the UK.
