A new report indicates that the People's Republic of China is like to approve Microsoft's acquisition of Activision Blizzard. If approved, it would be only one of four countries to approve the deal without any major objections from a government entity. It would also be a massive victory for Microsoft and its efforts to acquire the company.
In early 2022, it was revealed that Microsoft intended to purchase Activision Blizzard for a little under $70B. It was the latest in a series of high-profile purchases that began in 2018 and continued well into the new decade. This included the purchases of companies like Obsidian Entertainment and Ninja Theory before the company scooped up Bethesda in 2020. This latest purchase, however, has not been without its detractors but appears to have overcome a big hurdle.
In the past, Xbox CEO Phil Spencer has said he's confident that the Activision Blizzard deal will go through, and the latest development seems to indicate that it will. According to a new report, China is expected to approve the acquisition within the next few days. Two anti-trust lawyers working on the deal revealed that China's State Administration for Market Regulation is likely to approve the deal despite complaints, though it is currently unclear who specificially lodged the complaints in the country.
From the start of things, Microsoft's attempt to acquire Activision Blizzard has been met with scrutiny and many have wondered if such an acquisition would make the company too powerful. In late 2022, the FTC filed a lawsuit to keep the Activision Blizzard acquisition from going through. This in turn has sparked a PR war between the agency and the tech company, with Microsoft even going so far as to accuse the agency of violating the Constitution. The company would later admit that this accusation was a mistake. Various pre-trial hearings have already been held in the United States, though it isn't clear if the courts will keep the acquisition from going through.
The United States isn't the only country to object to the acquisition. Earlier this year, a report came in that the European Union is also objecting to the proposed acquisition, though Microsoft seems intent on holding its ground. With so much stacked against the acquisition, it remains unclear whether Microsoft will be able to finalize the deal. However, this latest development with China indicates that not everyone thinks that the deal is a bad idea.
Source: Equity Report