2023-09-22 07:11:46
Economy Entered 2023.09.22 16:11 Modified 2023.09.22 16:13 Photo = REUTERS Britain’s Competition and Markets Authority (CMA) said, “Concerns regarding monopoly have been resolved” regarding Microsoft’s (MS) acquisition of Activision Blizzard (Blizzard). It was announced on the 22nd (local time). On this day, the UK’s CMA said in a statement, “As MS proposed to transfer some of its cloud game service rights to its competitor Ubisoft, concerns regarding monopoly have been significantly resolved,” and “M&A can be concluded.” “Another door has opened,” he announced. CMA Commissioner Sarah Cardell said, “This merger can only be approved if it does not impede competition and innovation in the gaming market,” and added, “Microsoft has significantly revised its M&A plan to address existing concerns.” Previously, the CMA said opposed Microsoft’s Blizzard acquisition deal last April. This is because competition in the cloud gaming market is decreasing. Microsoft changed its acquisition plan last month and requested a re-examination from the CMA. The CMA plans to announce the results of the first stage review by the 18th. MS’s revised acquisition plan includes selling the service rights for popular games such as ‘Call of Duty’ to French game company Ubisoft. In addition, the company plans to sell service rights (excluding Europe) for games scheduled to be released within the next 15 years. This is a measure to ensure that game users can play Blizzard games even without a Microsoft game console. There is a response from the gaming industry that the merger between MS and Blizzard is virtually confirmed. MS acquired all of Blizzard’s shares for $68.7 billion (regarding 91 trillion won) in April last year. It was the largest acquisition in the history of the gaming industry and was called the ‘big deal of the century.’ The European Commission approved the merger in May, but difficulties continued as the UK and the US opposed the acquisition agreement. The US Federal Trade Commission (FTC) filed a suit for a preliminary injunction once morest Microsoft’s Blizzard acquisition agreement. Last month, a federal court in California ruled in favor of Microsoft, saying, “The claim that this M&A hinders competition in a specific industry has not been proven.” After Microsoft won the case, the mood changed. Immediately following the U.S. court’s dismissal decision, the CMA announced that it would reexamine the contract if Microsoft changes its contract structure to resolve concerns regarding reduced competition. If the CMA approves Microsoft’s acquisition plan, the merger will virtually be completed. Bloomberg said, “The last obstacle to a ‘big deal’ in the gaming industry has disappeared,” and “Microsoft, a latecomer, has gained momentum to make a splash in the gaming industry.” Reporter Oh Hyun-woo [email protected]
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