A major U.S. syndicate that previously sued Activision Blizzard for union busting has sent a letter to the European Union's antitrust authorities arguing in favor of the company's sale to Microsoft. Its rare act of big business-friendly advocacy arrived just as Microsoft prepared to defend the Activision Blizzard acquisition at a February 21 hearing with EU officials.The all-cash transaction valued at nearly $70 billion attracted major regulatory scrutiny immediately following its January 2022 announcement, culminating in a recent antitrust lawsuit by the U.S. Federal Trade Commission. And while many Xbox rivals expressed concerns with the Activision Blizzard acquisition, the deal has also found a somewhat unlikely ally in the Communications Workers of America, one of the largest U.S. syndicates, which sued the Call of Duty publisher over union-busting practices in August 2022. However, the CWA also came out in support of the company's sale to Microsoft a few months prior to that, after the Washington-based tech giant offered binding assurances that it will not stand in the way of collective bargaining at Activision Blizzard should the proposed sale go through.While the subsequent union-busting complaint against Activision Blizzard seemingly went against the CWA's pro-merger stance, the syndicate has once again signaled that it remains in favor of the deal. Namely, the CWA is has asked the EU to approve Microsoft's Activision Blizzard acquisition, having said as much in an open letter addressed to Margrethe Vestager, the executive vice president of the European Commission. The February 20 communication penned by CWA President Chris Shelton reiterates the union's optimistic stance on the transaction, positing that the proposed deal would provide a plain pathway to unionization for Activision Blizzard's 10,000-strong workforce. As such, the CWA remains adamant that a Microsoft takeover would benefit the global video game labor market on the whole.
The CWA boasts over 700,000 members across the United States and Canada, so while its view of the situation is in no way binding for EU regulators, it is still a huge PR win for the acquisition, given the union's track record of butting heads with Activision Blizzard over workers' rights. That notwithstanding, Brussels officials may not need much convincing to approve the takeover, especially given how Microsoft has reportedly been preparing an EU concession package since at least November 2022.
While multiple established analysts are now saying Microsoft's likely to complete the Activision Blizzard acquisition, many investors still appear to have some reservations about the proceedings. That's at least according to the gaming giant's current valuation, seeing as its stock continues to trade at roughly 20% below the provisional sale price of $95 per share, indicating 80% market confidence that the deal will go through.
Source: CWA