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[PaintTinJr]

Report: Microsoft and ABK Considering Pulling ABK From the UK and Offering Enforceable Remedies as Ways Around Activision CMA Block (Update)

Microsoft executives are actively exploring ways to close its acquisition of Activision Blizzard King, despite facing a block from the UK.

mp1st.com

Microsoft Might Be Preparing to Close ActiBlizz Deal Despite UK Opposition

According to an MLex report, Microsoft might be looking into options to close the Activision Blizzard merger even with the UK opposition.

wccftech.com

Report: Activision Blizzard Might Exit UK to Close Microsoft Deal - PlayStation LifeStyle

Microsoft and Activision Blizzard are reportedly mulling over the latter pulling out of UK in order to close their merger deal.

www.playstationlifestyle.net

Pachter has been saying this the whole time. Of COURSE they can choose to just take ABK products out of the UK and just close the deal for every other country. Were you under the impression that the CMA can regulate what OTHER countries do? @Nydius get used to playing Battlefield and Paladins instead of COD and OW the next time you pop open a pack of crumpets to settle down to play some games.

They most certainly can, and two airline companies in America - operating in America - that beat the FTC in court still had to divest because the CMA said so.

Go check the cases on the CMA website that they have blocked in the last 3years,

/edit

CMA blocks airline booking merger

Following an in-depth investigation, the CMA has blocked Sabre’s proposed takeover of Farelogix.

www.gov.uk

The US Department of Justice (DoJ) carried out a separate review and took Sabre and Farelogix to court to block the merger on the basis of concerns in one of the two areas where the CMA has found problems. On 7 April, the US District Court of Delaware decided to clear the deal, with the DOJ free to appeal that decision. The CMA’s job is to protect competition in the UK for the benefit of UK consumers and its processes, and grounds for assessment, are different to those in the USA.

 

[The Pleasure]

Better hide from mods. They are sniffing you man. You typed the taboo word.

 

[IFireflyl]

And i got banned for suggesting MS could threaten to withhold ABK content in the UK. How are you guys a worse echo chamber than Resetera? lol

Your tears taste delicious.

 

[feynoob]

Your tears taste delicious.

You could say that he has been served his reserrrved ban.

 

[Topher]

They can do what they want on their island. They shouldn't be able to dictate what the world can and cannot do. They don't like it they don't have to have it in their country, simple.

lol…you forgot the part where Microsoft wants to do business on their island. Simple, right?

 

[demigod]

MS leaks that they will put out the blueprint to bypass the CMA, and now the CMA wants to talk again. LOL
i predict we dont have to wait for the appeal for this to be approved.

Another alt account talking gibberish, get em boyz!

 

[Sleepwalker]

MS leaks that they will put out the blueprint to bypass the CMA, and now the CMA wants to talk again. LOL
i predict we dont have to wait for the appeal for this to be approved.

You soon:

 

[Bojanglez]

doesnt mean ABK content will not be available in the UK. there was an article the other day that said the games would be released by a local distributor, just like how blizzards partnership with netease because of laws in china.

Plot twist. Sony then picks up UK publishing rights for CoD like they (at least used to) have in Japan

 

[drganon]

Honestly my dude, look at this entire thread and tell me you don't see the definition of insanity. Any poster that makes any negative remarks against the deal is downvoted to hell, I'm one of those in the receiving end. Even the OP's take is borderline retarded.

Maybe Musk can buy reddit next and run another terrible site into the ground.

Also, gotta love all the sock puppet accounts coming out of the woodwork to regurgitate the same opinion piece and shill for the deal. Not obvious at all.

 

[Bojanglez]

That’s not true though.

There is a benefit to the consumer in that Gamepass would offer a far more cost effective way of playing CoD. If this was going to drive prices up, the merger would have been blocked as it applied to the static console market. The fact that it’s concentrating on cloud is the regulators waiving the impact on current consoles and recognising that there is a benefit.

Not a benefit that *we* might want, but a benefit all the same.

Not necessarily. What is the cost of playing a CoD game via Gamepass over 12 months, as opposed to buying it? What if you want to play it for 24 months?

The benefit comes from increased choice of payment model for access that Gamepass might offer, assuming that they continue to distribute on other platforms too.

 

[Topher]

doesnt mean ABK content will not be available in the UK. there was an article the other day that said the games would be released by a local distributor, just like how blizzards partnership with netease because of laws in china.

Did that article explain how Microsoft, an incorporated company in the UK, will be able to acquire a company the CMA has prohibited Microsoft from acquiring?

That's the mystery I can't figure out. I've been wrong plenty of times before though. We will see.

Side thought:

And by the way, imagine hoping that a $2 trillion corporation can subvert the law for fucking video games.

 

[POKEYCLYDE]

Now, serious question. Do you guys think that this acquisition has broaden even more the divide in the gaming community? Are we even more tribalistic now because of this?
Was trying to buy the biggest third party publisher the last drop on the gaming community?

I think the terror of Microsoft being able to acquire publishers whole sale is worse than who they're buying. Not sure than many gamers who frequent forums are like die hard CoD gamers. I think if Microsoft were going for Capcom the divide would be much stronger.

Microsoft side stepping the UK would give the FTC the ammunition it needs to literally disembowel Microsoft.

Curious, what would the FTC argue legally to dimebowel Microsoft? FTC's case on the merits are pretty weak. Not sure how Microsoft dealing with another countries regulator makes the FTC's case stronger.

Smith is going to really need to work some magic in those talks, but his disparaging remarks may come back to bite him in the ass.

Wasn't the UK chancellor the one who was disappointed in the CMA?

Seems like they're already pretty aligned.

 

[Heisenberg007]

Curious, what would the FTC argue legally to dimebowel Microsoft? FTC's case on the merits are pretty weak. Not sure how Microsoft dealing with another countries regulator makes the FTC's case stronger.

Why would you say that?

FTC will have the same arguments that the EC and CMA had. But the market position of Xbox consoles and xCloud will be the strongest in the USA. So, out of the 4 regulators, the FTC will have the best chance of blocking the acquisition (assuming everything goes according to law, and MS doesn't bribe politicians by money or lobbying).

 

[OmegaSupreme]

Alts. Alts everywhere.

 

[POKEYCLYDE]

Why would you say that?

FTC will have the same arguments that the EC and CMA had. But the market position of Xbox consoles and xCloud will be the strongest in the USA. So, out of the 4 regulators, the FTC will have the best chance of blocking the acquisition (assuming everything goes according to law, and MS doesn't bribe politicians by money or lobbying).

Someone else said it, the FTC has a higher burden of proof. The only reason why the CMA's decision is so final, and the appeal process is so hard is because Microsoft can't argue the merits of the case.

Even the CMA's arguments are fraught with uncertainty of how this nascent market will blossom.

So I'm curious how Microsoft side-stepping, ring-fencing or however the hell the may decide to get around the CMA's decision helps the FTC. The FTC still has to prove harm to competition.

Anecdotally you can say Microsoft's willingness to side step a regulator proves their intent to do dastardly things, but how exactly does Microsoft side stepping the CMA improve the FTC's case? Like, specifically what could the FTC argue?

 

[Heisenberg007]

Why is always when someone gets gone from this thread, a “new challenger” enters the ring?

DeepEnigma , GHG - while you guys are wasting your time fighting the good fight, I'm trying to calculate who the next posters will be, as per the rotation.

 

[MasterCornholio]

I honestly dont understand the point of these alts. It's like they believe they can change by posting the same theories over and over again. But the reality is they don't have any impact on the state of deal. Whatever happens is not influenced by their posting.

They posted before and said the CMA wouldn't block this and now look at what happened.

 

[Yoboman]

Someone else said it, the FTC has a higher burden of proof. The only reason why the CMA's decision is so final, and the appeal process is so hard is because Microsoft can't argue the merits of the case.

Even the CMA's arguments are fraught with uncertainty of how this nascent market will blossom.

So I'm curious how Microsoft side-stepping, ring-fencing or however the hell the may decide to get around the CMA's decision helps the FTC. The FTC still has to prove harm to competition.

Anecdotally you can say Microsoft's willingness to side step a regulator proves their intent to do dastardly things, but how exactly does Microsoft side stepping the CMA improve the FTC's case? Like, specifically what could the FTC argue?

Ringfencing the whole of the UK is bad for competition. Microsoft will prove FTCs case for them

 

[Boglin]

One thing I don't like about all the obvious alts that are in alignment with each other is that I'm noticing a bias growing in myself and it's becoming more difficult for me to stay mindful to look at arguments neutrally.
I'm beginning to make assumptions about the motivations behind some xbox fans' posts, like maybe they're receiving compensation, without making the same assumptions in regards to other fans, even though I logically know that Sony probably also employs similar tactics.

This console war is tearing me apart!

 

[POKEYCLYDE]

Ringfencing the whole of the UK is bad for competition. Microsoft will prove FTCs case for them

Explain. How would doing that hurt competition?

 

[Yoboman]

Explain. How would doing that hurt competition?

I have to explain how eliminating a company and all its games from an entire market is bad for competition?

 

[POKEYCLYDE]

I have to explain how eliminating a company and all its games from an entire market is bad for competition?

Wouldn't effect the FTC's jurisdiction, would it?

 

[Yoboman]

Wouldn't effect the FTC's jurisdiction, would it?

Their actions and statements in other markets can absolutely be used against Microsoft

 

[POKEYCLYDE]

Their actions and statements in other markets can absolutely be used against Microsoft

The merits of FTC's case doesn't change if Microsoft side steps the CMA.

I do not see how Microsoft's side stepping the CMA changes the FTC's case. No idea what the FTC could argue legally to disembowel Microsoft.

 

[Unknown Soldier]

One thing I don't like about all the obvious alts that are in alignment with each other is that I'm noticing a bias growing in myself and it's becoming more difficult for me to stay mindful to look at arguments neutrally.
I'm beginning to make assumptions about the motivations behind some xbox fans' posts, like maybe they're receiving compensation, without making the same assumptions in regards to other fans, even though I logically know that Sony probably also employs similar tactics.

This console war is tearing me apart!

 

[Yoboman]

The merits of FTC's case doesn't change if Microsoft side steps the CMA.

I do not see how Microsoft's side stepping the CMA changes the FTC's case. No idea what the FTC could argue legally to disembowel Microsoft.

Because removing all Activision titles from the UK doesn't just affect Microsoft and Activision. It also harms Sony, Nintendo and all cloud providers who would have access to those titles in the UK if the merger didn't exist

It's proof of the damaging effects Microsoft is having on its competitors and would also undermine any arguments Microsoft could make about incentive to remove COD from other systems when they would willingly remove a whole market

 

[POKEYCLYDE]

Because removing all Activision titles from the UK doesn't just affect Microsoft and Activision. It also harms Sony, Nintendo and all cloud providers who would have access to those titles in the UK if the merger didn't exist

It's proof of the damaging effects Microsoft is having on its competitors and would also undermine any arguments Microsoft could make about incentive to remove COD from other systems when they would willingly remove a whole market

What harms everyone equally, is not a harm to competition. Harming competition is an un-balancing of the scales.

Now your bolded on the other hand, that's a good argument. I could see the FTC using that to justify it's reasoning to distrust what Microsoft says about their incentives.

But even so, I don't think it's a slam dunk for the FTC.

The FTC can argue that Microsoft will make CoD exclusive, and doing so would harm competition, and you can't believe what Microsoft says about their financial incentives because if they are willing to leave a whole market, they'd be willing to make CoD exclusive. Very sound, logical argument.

However, Microsoft has multiple avenues to attack that argument. These are just possible things they could argue:
- The revenue/profit gained from acquiring ABK is greater than what we would lose by alienating the UK market.
- The FTC says making CoD exclusive harms competition, but our numbers and models show different.

And then it boils down to a judge. What does the judge believe. It's hyperbole to say Microsoft sidestepping the CMA gives the FTC what they need to disembowel Microsoft.

 

[Yoboman]

What harms everyone equally, is not a harm to competition. Harming competition is an un-balancing of the scales.

Ridiculous that you believe that

I suggest you look up group boycotts and refusal to deal.

I'd also add an additional conundrum that Microsoft and ABK may be breaching their own 10 year contractual agreements with Nintendo, streaming providers etc. by not being able to have any games in the UK

 

[Ogbert]

That is not a benefit.
This deal is a curse for gamers.

You only think of gamepass. But have you ever thought of the consequences for allowing a deal at this magnitude to pass?

There is no problem if they were buying cdpr or Sega. But this is a freaking 67b deal in a gaming sector. If this gets approved, all the big boys will jump in gaming, because that is absurd money to spend on a gaming publisher.

That is what the consumers will face if this deal gets approved. So fk that gamepass benefits.

No. It’s a benefit. CoD will cost less.

I agree with you that it sets a worrying precedent. But you can’t simply waive away the fiscal saving.

 

[Ogbert]

To me the most insane part of all this is still EC and CMA waving away console market concerns. EC specially with their 4-1 remarks, like by that logic MS could buy ABK, Ubisoft, T2, Sega, all in one swoop and that argument would still stand. It’s an insane argument.

Couldn’t agree more.

I actually think the cloud argument is a little tenuous.
But I’m very surprised at how ABK is being readily accepted as a standard developer and the deal categorised as a vertical purchase.

It has the status of a titanic publisher and there’s an argument to be had that this is horizontal consolidation.

 

[wolffy66]

What else is there?

What else is there? Breaking the law?

There's doing it anyway then hiring a law firm to say you did what the cma required. Then there's hiring a law firm to say that any fines the CMA imposed were illegal. Then you have courts weighing in and policies voicing any concerns the ruling might have. There's plenty of things that are possible. Microsoft just saying "ok, this is too much trouble" is certainly one of them.

 

[Riky]

As predicted.

 

[MasterCornholio]

As predicted.

Cool that means we are going to see the appeal process.

 

[POKEYCLYDE]

Ridiculous that you believe that

Harming a competitor is not the same as harming competition.

 

[feynoob]

No. It’s a benefit. CoD will cost less.

I agree with you that it sets a worrying precedent. But you can’t simply waive away the fiscal saving.

No it's not.
The moment MS gets the approval of this deal, they will lose other big games because those big guys will buy those publishers.

You are going to lose a lot of games which would have come to gamepass, in order to get COD.

The trade is bad.

 

[Heisenberg007]

As predicted.

What was predicted? That Brad Smith will "vent his frustration?"

 

[MasterCornholio]

What was predicted? That Brad Smith will "vent his frustration?"

Brad Smith is going to hold him hostage.

 

[feynoob]

As predicted.

Can someone tell him that CMA isnt like FTC and that the government can't do anything to them?

 

[Bernardougf]

Can someone tell him that CMA isnt like FTC and that the government can't do anything to them?

His going to tell them to comply or they are out of the UK .... using his big boy pants

 

[Three]

Harming a competitor is not the same as harming competition.

It's the same. When you harm a competitor in an illegal way you are harming competition.

You can harm competition for the consumer too without harming competitors. Price fixing and cartels are examples of this. Where no scales have been unbalanced but the consumer choice, quality or price is harmed.

So "What harms everyone equally, is not a harm to competition. Harming competition is an un-balancing of the scales" is wrong when you think of the latter. You can harm competition by hurting everyone equally.

 

[PaintTinJr]

As predicted.

You genuinely believe Jeremy Hunt can give Microsoft government access like that - without complaints to the standards commission, unless he's telling them no - and somehow influence a CAT timeframe - in the next week or so - and the CAT, and CMA decisions and get it all done before July 17th and not find himself in a national argument about bribery and corruption before that which could kill the conservative party?

I don't rate the guy, but you must think he is complete clown level if you believe he'll do that for you(Microsoft).

 

[Three]

Ridiculous that you believe that

I suggest you look up group boycotts and refusal to deal.

I'd also add an additional conundrum that Microsoft and ABK may be breaching their own 10 year contractual agreements with Nintendo, streaming providers etc. by not being able to have any games in the UK

It would be interesting to know what happens with Sony's current contract with Activision. There is no way they would be happy if Activison pulled out of the UK. They might throw some heavy fines towards Activison if there is a breach of contract there.

 

[Riky]

We'll see after the appeal, the pressure is mounting when the EU which this government took us out of due to red tape now is showing it has less red tape than you.
That's pretty embarrassing and I'm sure someone from number 11 is having a word with the CMA.

What was predicted? That Brad Smith will "vent his frustration?"

I predicted someone from number 11 will be having a word. Some very naive people thought otherwise.

 

[Astray]

Activision pulling out of the UK is a non-starter, Kotick would probably have to disclose this in advance and obtain shareholder approval for it (basically 0 chance of the latter).

The more I hear of those kinds of plans (Chancellor intervention, Pulling out of UK etc), the more I think this deal is crumbling, you wouldn't need to consider any of this if deal is smooth sailing.

 

[feynoob]

Activision pulling out of the UK is a non-starter, Kotick would probably have to disclose this in advance and obtain shareholder approval for it (basically 0 chance of the latter).

The more I hear of those kinds of plans (Chancellor intervention, Pulling out of UK etc), the more I think this deal is crumbling, you wouldn't need to consider any of this if deal is smooth sailing.

This is them not wanting to payout the 3 billion price tag.
They know the deal isnt going to happen, because the deadline for the contract is next month.
So CMA and cat decision are meaningless, if they can't renew it.

 

[Bernoulli]

Coming back to this thread

 

[dotnotbot]

Meeting with chancellor is probably their last ditch effort before this falls through. I'm betting renegotations will fail.

 

[MasterCornholio]

This is them not wanting to payout the 3 billion price tag.
They know the deal isnt going to happen, because the deadline for the contract is next month.
So CMA and cat decision are meaningless, if they can't renew it.

They are going to have to pay that regardless. Unless something happens with ABK that is.

 

[PaintTinJr]

I predicted someone from number 11 will be having a word. Some very naive people thought otherwise.

Or, maybe their tax avoidance has got to such an extent that the tax man(the Chancellor) wants to have a private word before embarrassing them with very public legal action from HMRC .

 

[Astray]

This is them not wanting to payout the 3 billion price tag.
They know the deal isnt going to happen, because the deadline for the contract is next month.
So CMA and cat decision are meaningless, if they can't renew it.

Activision's latest moves come across like they're beginning to think about cutting their losses and taking the 3 billy.

Microsoft wanted them to be in the appeal by July 18, that way there will be an obligation to continue "best efforts" and march together into the appeal, but the late July deadline alone fucks that plan up. Hence we are now getting puff interviews with Kotick (who barely appeared before this btw).