Microsoft might consider pulling Activision out of the UK to sidestep the CMA’s ruling

Microsoft is potentially considering taking Activision outside of the UK so you don’t have to deal with the country blocking your acquisition.

Microsoft’s entire attempt to acquire Activision Blizzard was always going to be a lengthy process considering it was a $70 billion dollar deal, with the main hurdle getting it approved by various regulators in numerous territories. Microsoft hit a bit of a snag in April when the UK’s Competition and Markets Authority (CMA) decided to block the merger, which obviously didn’t please the tech giant. Now, according to a new report from BloombergHowever, it looks like Microsoft is considering some pretty extreme options to get the deal done, including pulling Activision outright from the UK (paywall, thanks). CVG).

According to the report, Microsoft Chairman Brad Smith will meet UK Chancellor Jeremy Hunt next week to express his disappointment at the CMA’s decision to block the deal. Microsoft also confirmed that Smith is coming to London, where he currently plans to give a talk on “the potential of AI and the need for careful regulation of it.” A private chat will also take place to address other topics, “including the proposed acquisition of Activision Blizzard, as we remain committed to finding creative and constructive ways to address remaining regulatory concerns,” a spokesperson said.

The report notably claims that Smith plans to meet with Microsoft’s legal representatives to discuss what he plans to do to respond to the CMA’s decision, with the most “extreme” options being to withdraw Activision from the UK market entirely, or simply to move on. ignore the ruling and continue with the deal. VGC pointed out how, in theory, by moving Activision’s operation somewhere in Europe outside of the CMA’s jurisdiction, it could continue to sell games in the UK through a distributor.

Microsoft has filed an appeal against the CMA, whose hearing is scheduled for the end of July. With a deal of this magnitude, it’s no surprise that Microsoft would go to great lengths to pull it off, so who knows where it will go next.