Xbox Game Studios: Acquisition of Activision Blizzard Should Face Strict Review

A more thorough review by authorities is expected on the progress of Microsoft’s acquisition of Activision Blizzard. It will be a long time before Microsoft takes control of Activision Blizzard. Because, the biggest deal in the technology sector is likely to be closely scrutinized by local government agencies.

That’s the view of David Bicknell, analyst at GlobalData. He also predicts that this won’t just be widely publicized. Microsoft is also expected to comment on the agreement on an ongoing basis.

“Technology acquisitions are under increasing scrutiny from regulators, so the biggest deal in the history of technology to escape the regulators will increasingly dominate Microsoft’s coverage.

“Microsoft is expected to provide ongoing feedback on the deal’s progress, just as Nvidia did in its protracted pursuit of Arm.”

Bicknell also pointed to the expectation that Nuance would be subject to closer scrutiny of the deal. The speech-to-text solutions developer was bought by Microsoft and has yet to be approved by the UK Competition and Markets Authority despite EU and US approvals.

“While the acquisition of Nuance has been cleared in the EU and US, it still needs to be cleared by the UK Competition and Markets Authority and a decision on a further investigation cannot take place until March 2022. Microsoft can expect the regulators further scrutinize their large Activision-Blizzard deals and debate the possible outcome on an ongoing basis.”