Bobby Kotick, CEO of Activision, has responded to news that the CMA has blocked Microsoft’s proposed acquisition of the publishing powerhouse, due to concerns that it would “alter the future of the fast-growing cloud gaming market.”
Microsoft immediately declared it that it would contest the decision, and now, Kotick has said that while he’s disappointed in the outcome, “it is far from the final word on this deal.”
Today, the Competition and Markets Authority (CMA), a regulatory agency in the UK, decided not to approve our merger with Microsoft. This isn’t the news we wanted – but it is far from the final word on this deal. Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal. We’re confident in our case because the facts are on our side: this deal is good for competition.
The UK hopes to grow its leadership position in technology, and a combined Microsoft-Activision would accomplish exactly that. At a time when the fields of machine learning and artificial intelligence are thriving, we know the UK market would benefit from Microsoft’s bench strength in both domains, as well as our ability to put those technologies to use immediately.
By contrast, if the CMA’s decision holds, it would stifle investment, competition, and job creation throughout the UK gaming industry. This merger is a complex process, and I know I’m not the only one frustrated by the hurdles and delays. We’re accustomed to a company culture that moves quickly to accomplish big goals, so it’s tough when we can’t close things out at our usual energetic pace.
Kotick had previously claimed that Sony was trying to sabotage Microsoft’s attempts to acquire Activision.
[Source – VGC]