Activision Blizzard CEO Bobby Kotick has responded this morning to the UK’s Competition and Markets Authority (CMA) blocking Microsoft’s $69bn acquisition deal.
In an internal email, published publicly, Kotick said the result was “not the news we wanted – but it is far from the last word on this deal”.
He also confirmed that Microsoft would be protesting the decision as well. “We are confident in our case because the facts are on our side: this deal is good for competition,” he said.
Much of Kotick’s response focused on the benefits the merger would bring to the UK tech market.
Kotick said: “At a time when the fields of machine learning and artificial intelligence are flourishing, we know the UK market needs Microsoft’s bench strength in both areas as well as our ability to quickly harness those technologies. would benefit from.”
“On the contrary, if the CMA’s decision is implemented, it will stifle investment, competition and job creation across the UK gaming industry.”
This Mirror has a similar statement on Twitter from the company’s EVP and CCO of Corporate Affairs Lulu Cheng Meserve: “This report also does a disservice to UK citizens, who face increasingly grim economic prospects, and We will need to re-evaluate our growth strategy in the UK.” ,
Today’s report from the CMA is a major blow to the UK’s ambitions to become a tech hub, and we will work with Microsoft to reverse this on appeal.
The report also does a disservice to UK citizens, who face increasingly grim economic prospects, and we will need to re-evaluate our…
— Lulu Cheng Meservey (@lulumeservey) April 26, 2023
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Kotick continued: “This merger has been a complex process, and I know I am not the only one to be frustrated by the obstacles and delays. We are accustomed to a company culture that moves quickly to meet big goals , so it’s tough when we can.” Don’t take things off at your usual energetic pace. We will continue to press our case, because we know this merger will benefit our employees, the wider UK technical workforce and players around the world.
“I am going to do everything I can to advocate for us personally and help regulators understand the competitive dynamics in our industry. What gives me confidence is that whether we are on our own Whether merged or merged with another company, we are one of the strongest companies in our industry, poised for continued growth, and building on our incredible IP.”
The CMA’s decision today comes as a blow, following its recent provisional findings that the merger “would not lead to a substantial reduction of competition in relation to console gaming in the UK”, although concerns about competition in cloud gaming remain. It is these concerns that form the basis of its rejection.