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The $69 billion merger between Microsoft and Activision Blizzard now has a deadline of October 18, 2023. The UK's Competition and Markets Authority (CMA) began an inquiry into the acquisition. It said it was doing so after receiving complaints about the potential effects it would have on the video gaming market's level of competition.
By September 1st, the CMA must determine whether to open a thorough probe into the transaction. The merger may be put off even longer if that happens.
Microsoft said in a statement that it was "optimistic" the agreement will be approved and that the additional time would provide the parties "ample time to work through the final regulatory issues." The largest acquisition in the history of the video game business would be the one of Activision Blizzard. The most well-known video gaming franchises in the world, such as Candy Crush, World of Warcraft, and Call of Duty, would come under Microsoft's ownership.
Gamers have reacted to the agreement in different ways. While some people are excited about the idea of Microsoft spending more money in Activision Blizzard's games, others are worried about how it could affect the competition. It is uncertain if the CMA will approve the transaction. But by delaying the deal until October, Microsoft and Activision Blizzard will have more time to respond to the CMA's concerns and complete the merger.
How does the extension affect gamers?
The deadline delay for the merger is unlikely to have a substantial immediate effect on gamers. The video game business may be affected in a number of ways if the merger is ultimately authorised. One possible conclusion is that Microsoft may hike game pricing using its heightened market dominance. Microsoft may, however, utilise its size to make investments in cutting-edge software and games, which would ultimately be advantageous to players.
Another possible effect of the agreement is that it may encourage more industry consolidation in the video gaming sector. Microsoft would rank among the biggest video game publishers in the world if it were to successfully acquire Activision Blizzard. This could force other publishers to merge in an effort to compete. In the end, it will be interesting to watch how the Activision Blizzard and Microsoft deals will affect players. The extended deadline for the merger provides Microsoft and Activision Blizzard additional time to allay CMA's worries and complete the transaction.