Microsoft CEO Satya Nadella commented on the release Bloomberg the UK regulator’s decision to scrutinize the deal to acquire Activision Blizzard for $68.7 billion.
Recall that the British Competition and Markets Authority (CMA) was concerned that such a large operation as the purchase of Activision could harm its competitors Microsoft and “Throttling Competition in the Emerging Cloud Gaming Market”.
Nadella says it’s not surprising that a takeover of this magnitude (a record for the gaming industry) is under scrutiny: “We are very, very confident that we will make the breakthrough”.
Nadella noted that Microsoft is only fourth or fifth (depending on your perspective) in the video game industry: “So if you’re afraid of competition, let’s compete.”
The Microsoft boss also named Sony, which has recently made a string of gaming acquisitions, as the segment leader, despite data from the analyst firm New zoo give the Chinese Tencent the supremacy.
Sony remains one of the main opponents of the deal: the company is confident that the transfer will give Microsoft control of Activision games like Call of Duty “serious negative consequences for gamers and the future of the industry”.
Microsoft plans to complete its acquisition of Activision Blizzard by June 30, 2023, but first needs to get the green light from a number of regulators. So far, a potential union has only been approved in Saudi Arabia.