Microsoft CEO Satya Nadella has stated that he’s confident that the company will receive approval from regulators to proceed with its acquisition of Activision Blizzard, Bloomberg reports.
At $69 billion, the acquisition would be the most expensive acquisition in gaming history. Although the deal has been approved in Saudi Arabia, the Uk’s competition regulator – the Competition and Markets Authority (CMA) – has signaled its intent to conduct an in-depth review before approving it. Should the CMA decide against confirming the deal, it could affect the company’s ability to conduct business in Britain.
“Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we’ll come out,” Nadella told Bloomberg Television.
Although Nadella remains optimistic, investors remain skeptical. Activision stock was valued at $75.32 at close of business on Wednesday – a rise, but one that left the company more than 20 percent below the offer price. This could signal doubt that Microsoft will close the deal.
Competition of Monopoly?
Part of the CMA’s concern is how the deal could affect competitors. Microsoft remains one of the largest names in the gaming industry, with Nadella stating that depending on how you count they stand at number four or number five. Nadella believes that this acquisition is in line with the industry, with the company’s chief competitor, Sony, also making several recent acquisitions.
“So if this is about competition, let us have competition,” said Nadella.
The acquisition of Activision Blizzard would make Microsoft the third largest gaming company in the world.
Nadella also remains optimistic that Microsoft can cope with the worldwide economic downturn, despite a recent slowdown in hiring.
“I am optimistic about Microsoft’s value proposition. I’m optimistic about our share, but we are not immune from anything that is a macroeconomic headwind.”
Last month, we listed Activision Blizzard as one of the top 50 mobile game makers of 2022.
