Microsoft should just offer the CMA a big win. Concede to not make any acquisitions over a certain amount (say 250 mill) tor the next 5 years.
Lets them get a win against big tech and puts Microsoft past the Lina Khan era.
1 Like
Thatâs not going to work.
8 Likes
It provides an out and win for all sides. What are your thoughts on why it wouldnt
No itâs not. Itâs on the merger and the merged entities ability to trade in the U.K. Even Foss has said this.
I worry for Zappy when this closes
6 Likes
The CMA are dicks. Their structural remedy options were all dog shit.
- Removing all business related to Call of Duty from the deal;
- Acquiring Activision Blizzard without the Activision Segment;
- Acquiring Activision Blizzard without both Activision and Blizzard segments (the deal would include only King, perhaps).
The first 2 were basically the same thing.
Whereâs the Activison Blizz without King option assholes.
11 Likes
A token remedy. 15 year guarentee gamepass doesnât increase in price. Microsoft will say its cheaper for them to do that then pay Activisions break up fee so its very credible.
Then the CMA can change its mind, call it a win and maintain what little dignity it had.
Iâd also settle for a massive ad campaign. âCommunist China can play Call of Duty on game pass but your government wonât allow you!â
4 Likes
I think they got convinced by the FTC that the deal would be blocked and that they should do it as well. I think we should not neglect the implication of Khan into the UK process. She was asked by the House of Commerce about it and her answer was far from being clear.
2 Likes
8 Likes
7 Likes
10 Likes
From a legal perspective can Microsoft close the deal without the CMA approval?
1 Like
With fines or penalties from the CMA, because theyd be legally violating their decision.
As far as the requirement of CMA approval in their contract, they can waive the CMA approval because it is on Microsoft side of the contract. They just need to be prepared for whatever consequences there would be.
4 Likes
Win the CAT appeal and then hopefully outside pressures lead to the CMA offering a favorable structural remedy. CMA âwinsâ by having big tech capitulate and the UK donât look like absolute clowns for blocking the deal wholesale.
I am not sure they will go past the July date. If the CMA doesnt change their mind after the public outcry, political outcry, and all other regulators going in a different direction, then theres no reason to think theyll change their minds even if CAT gets rid of the SLC.
I think its more likely they force their hand, make them either change their decision by June 19th or face Microsoft closing over them and them looking weak and powerless rather than the regulatory powerhouse they want to be.
Theres a lot of headroom for Microsoft to accept fines and many avenues to appeal fines in the UK. As others mentioned they could also try not closing in the UK and battling out the legality (not just the size) of such fines.
1 Like
Legally? Yes. As they can close as long as MS and ABK doesnât operate in the UK as a combined entity.
So itâll require ABK to divest their ABK operations into an independent company.
I thought the CMAâs decision was final and they have to win the appeal in order for the CMA to relitigate the merger.
Still find it absolutely wild that the FTC has not sat with Microsoft to hear their proposals. At the end of the day they regulate these companies so even if they have preconceived notions of a particular deal, they still need to hear the other party out.
I cannot imagine a federal judge will look at this too kindly if this ever ends up in court.
16 Likes
CMA can volunteer for a remand.
2 Likes
Is there a possibility that the UK government will change the CMA team before the final response deadline of 19 June?