While it may seem like forever since Microsoft announced it was acquiring Activision Blizzard in a mammoth deal worth $68.7 billion, it's not been so easy to get the merger approved. This is a good thing as such enormous deals should be properly looked at considering how much impact such a merger will have on the games industry. After all, Activision Blizzard is the home of huge shooter series Call of Duty, the perenially popular Warcraft, as well as King, the mobile specialist that mints money with Candy Crush.
That's not to mention the fact that Microsoft is a $2 trillion company with a size that dwarfs the likes of Sony and Nintendo. However, in the console space, Xbox trails its rivals with the Nintendo Switch and PS4 and PS5 far ahead. As multinational corporations, Microsoft and Activision Blizzard needed regulatory approval from all the markets in which they operate and the UK's Competition and Markets Authority (CMA) was seen as a major obstacle. However, as the Financial Times reports, it now seems likely that the CMA will approve the deal.
It was not so long ago that the CMA seemed quite negative on it all as the watchdog warned that the merger could "harm gamers" and might result in higher prices and fewer choices. The CMA pointed to the Call of Duty franchise, its popularity being of major significance in the console space, while also drawing attention to console supply and cloud gaming. In the weeks and months since, Microsoft has been hard at work making overtures to the regulator and been busy making promises and deals that it will ensure that CoD will remain available on other platforms such as PlayStation and even Nintendo Switch.
This wooing appears to have worked as the CMA looks like it has changed its tune. On Wednesday, the Competition and Markets Authority will conclude its investigation and publish its final decision on the merger. And the FT writes (via ResetEra) that this big announcement "is likely to prove a damp squib as the CMA is expected to support it".
The business-focused newspaper should have its ears to the ground on this, so it would be a big surprise if the CMA strikes the deal down. While this will be a major hurdle for Microsoft to overcome, the US giant is still awaiting approval from the FTC. Microsoft has a trial with the FTC scheduled for August 2. So there is still some time yet before we see the merger go ahead, if it does.