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Censorship is too strict, and Blizzard insiders worry that Microsoft will screw up the acquisition.

2025-04-03 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

CTOnews.com, Nov. 8-Microsoft's $69 billion acquisition of Activision is facing intense regulatory scrutiny, and some insiders at Blizzard Studios worry that Microsoft could screw up the deal, according to Nypost.

Microsoft plans to buy Activision for $95 a share, and antitrust authorities in the US, UK and EU are reviewing the proposed deal. Activision shares soared above $82 when the acquisition was announced in January, but have fallen below $73 as of Thursday, suggesting investors are sceptical about the success of the deal.

Some industry insiders and analysts said Microsoft had a better relationship with regulators in recent years than rivals such as Meta and Google and probably did not expect such a level of scrutiny. Sources close to the situation said increasing pressure had divided the two companies behind the scenes, despite Activision and Microsoft showing brave faces in public, insisting that the deal would be completed smoothly.

The key question is what Microsoft promises, or lack of commitment, to game rivals such as antitrust regulators and PlayStation maker Sony, which is vehemently opposed to the deal.

Phil Spencer, Microsoft games chief executive, has said publicly that the company plans to continue to offer Activision's popular call of Duty series on PlayStation and is likely to bring it to other consoles, such as the Nintendo Switch.

But Microsoft refused to provide any legal remedies to EU regulators until a full investigation is expected to begin on Nov. 8, Reuters reported last week. Microsoft could choose to provide the EU with so-called behavioral remedies, such as a formal commitment to retain the "call of Duty on PlayStation", but Microsoft refused to do so. The company will still be able to do so during a full investigation.

Activision insiders and analysts say Activision, led by Bobby Kotick, would prefer Microsoft to adopt a more tolerant attitude towards regulators now, because shareholders of the game maker will be rewarded whether Microsoft makes concessions or not.

Some analysts and critics believe that providing exclusive rights to Activision's games on Xbox is a major attraction of the deal for Microsoft, although the company has stated that it will retain "call of Duty" on PlayStation. While a public guarantee is one thing, abandoning the exclusive game under the law could undermine the deal, the source said.

Dan Ives, managing director of Wade Bush Securities, said: "Microsoft's decision to buy Activision is all about exclusivity. If giving up exclusive rights is one of the necessary concessions, Microsoft will have to carefully consider whether this is still the right deal."

Clay Griffin, a research analyst at MoffettNathanson, also said that "Microsoft cannot be forced to accept harsh conditions."

If the European Commission, the UK's Competition and Market Authority or the US Federal Trade Commission clamp down on the deal, Microsoft will have to pay Activision a break-up fee of $3 billion, a drop in the bucket for the $1.7 trillion technology giant.

A spokesman for Activision said in a statement to Nypost: "We are very grateful for our close working relationship with Microsoft. We are confident in the deal and its progress, and we know that Microsoft is working hard to complete the deal. Any idea to the contrary is wrong."

A Microsoft spokesman said in a statement to Nypost: "from the moment this acquisition was announced, we have been working urgently to show that we are serious about taking the necessary steps to obtain approval, including a positive commitment to how we run our business around gamers and developers. The process has progressed as expected and the deal is still expected to be completed as scheduled."

CTOnews.com learned that Microsoft has a legal obligation to do its best to complete the deal, and if Activision believes that Microsoft deliberately screwed up the acquisition, it can sue the Xbox maker.

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