Microsoft Secures Activision Blizzard Deal After UK Regulatory Drama
Microsoft’s £54bn Gaming Takeover Gets UK Nod
Microsoft has finally clinched approval from UK regulators to buy Activision Blizzard, the studio behind Call of Duty. The Competition and Markets Authority (CMA) lifted its block on the revised £54 billion ($69 billion) deal, ending a near two-year regulatory standoff over the biggest gaming takeover in history.
CMA Slams Microsoft’s Tactics During the Scrutiny
Though the deal got the green light, the CMA had harsh words for Microsoft’s behaviour throughout the process. After the original bid was blocked in April, Microsoft president Brad Smith publicly slammed the CMA’s ruling as “bad for Britain.” CMA chief Sarah Cardell shot back, accusing Microsoft of dragging out the saga and wasting time and money with pointless demands. She branded their tactics “inappropriate” and criticised the tech giant for frustrating the regulator’s efforts.
What’s Changed? Ubisoft Steps In to Keep Competition Alive
To secure approval, Microsoft agreed to hand over cloud distribution rights for Activision’s games on consoles and PC to Ubisoft, the French publisher. The CMA believes this move will keep gaming prices competitive, offering players better choice and services. This compromise was key to swinging the regulator’s support behind the mega-merger.
UK Markets Tread Water Amid Global Economic Jitters
Elsewhere, the FTSE 100 barely budged on Friday. Energy stocks gained, boosted by rising oil prices, but worries over US interest rates kept investors cautious. Fund manager Ashmore took a hit after reporting a drop in assets under management, partly blamed on China’s slowing economy and high rates.
Global stock markets stumbled following hotter-than-expected US inflation figures, raising fears of more Fed rate hikes. Still, the FTSE 100 and mid-cap indices are on track for their biggest weekly rises in a month.
Shares Shaken: Shell, BP Up; Wealth Managers Down
- Oil giants Shell and BP saw shares climb alongside rising crude prices.
- Miners of gold and copper enjoyed gains as metal prices nudged higher.
- Ashmore’s shares slipped amid falling assets and economic concerns.
- St James’s Place plunged almost 10% after reports regulators pushed for a major fee overhaul, hammering the investment banking and brokerage sector with a 1.4% drop.
