Activision calls CMA decision ‘irrational and inconsistent with the evidence’

As announced on January 18, 2022, Microsoft (MSFT) plans to acquire Activision Blizzard (ATVI) for $95 per share in an all-cash transaction. Today, the United Kingdom Competition and Markets Authority announced a decision to block the merger, stating that competition concerns arose in relation to cloud gaming and that Microsoft’s remedies addressing any concerns in cloud gaming were not sufficient. In its earnings release this morning, Activision said, "Activision Blizzard considers that the CMA’s decision is disproportionate, irrational and inconsistent with the evidence. Microsoft has announced its decision to appeal the CMA’s ruling, and Activision Blizzard intends to fully support Microsoft’s efforts on this appeal. Activision Blizzard continues to believe that the deal is pro-competitive, will bring Activision Blizzard content to more gamers, and will result in substantial benefits to consumers and developers in the UK and globally. The parties continue to fully engage with other regulators reviewing the transaction to obtain any required regulatory approvals."