UK Blocked Microsoft $69 Bn Activision Blizzard Acquisition Deal

British regulators blocked Microsoft's $69 billion purchase of "Call of Duty" creator Activision Blizzard because they thought it would reduce competition in the cloud gaming market.

The nation's antitrust watchdog declared that Microsoft's pledge to grant access to Activision's multibillion dollar "Call of Duty" franchise to top cloud gaming platforms would not adequately allay its concerns.

In a statement, Microsoft claimed that it was still completely committed to the acquisition and that it would file an appeal.

"We remain fully committed to this acquisition and will appeal," Brad Smith, vice chair and president of Microsoft, said. "The CMA's decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the UK."

In the US pre-market trade, Activision shares witnessed a decline of over 10% in its shares. This unexpected verdict follows the Competition and Markets Authority's (CMA) decision last month to withdraw its apprehensions regarding the deal's effect on the console market, dominated by Sony's PlayStation. However, cloud streaming services remained a challenge, which Microsoft addressed by entering into licensing agreements with the proprietors of streaming platforms, such as Valve Corp, Nvidia NVDA.O, and Boosteroid.

In accordance with their initiative to bring the immensely profitable "Call of Duty" franchise to Nintendo's Switch platform, Microsoft had extended a 10-year license to Sony, who had previously voiced their opposition to the deal.