
Following today's announcement that Microsoft's takeover of Activision Blizzard has been given a new deadline of October 18th, an email sent by Xbox's Phil Spencer to employees has been revealed by The Verge.
In the email, Spencer acknowledges that Microsoft could technically close the acquisition in the United States due to "legal developments" regarding the FTC over the past week, but the company is holding off due to the UK CMA.
"While we can technically close in the United States due to recent legal developments, this extension gives us additional time to resolve the remaining regulatory concerns in the UK."
Of course, the UK CMA officially blocked the takeover back in late April, but has recently shown signs of being willing to work with Microsoft on finding a resolution that will suit all parties. However, the regulator needs a little longer to deliberate on this.
Spencer undoubtedly seems confident that the Activision Blizzard deal will be completed soon, telling employees that the deal is "mov[ing] even closer to the finish line", so fingers crossed we get a resolution before that October date.
"As we move even closer to the finish line, we are more excited than ever before about furthering our mission to bring more games to more players everywhere."
Do you think the UK CMA will be won over? Let us know your thoughts in the comments.
[source theverge.com]
Comments 32
Its looking good and Microsoft have handled it as well as they could
Win-win. Microsoft will get to close the deal, and the UK will extract further concessions for their market.
Dammit, Brits. I could have been playing COD or StarCraft on Gamepass this week.
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@SilverGrey1 CMA is not doing anything infact. When was the last time UK did something right I can't remember.
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@SilverGrey1 Lol, they're not stopping this acquisition.
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Wildly confusing. Though thay seems to be Microsoft's current MO. They could have closed and dealt with the CMA after.
I see this coming back to bite Microsoft.
@SilverGrey1 Rumour has it FBI will storm Phil Spencer's office at any moment
Just in time for the new COD game this year.
@InterceptorAlpha Nah, if anything it makes them more compliant for future acquisitions.
All it does is piss us off by making us wait more.
@InterceptorAlpha Yes, however, the CMA would throw a hissy fit. We saw how dramatic and irrational they can prove. They came back to the table immediately after the FTC loss. Seems the goal is to leech off of the ethereal "cloud gaming" industry.
It feels like they are bleeding people off their 3 year Game Pass subscriptions. One of the main reason for me wanting my Game Pass to lapse is how few AAA day 1 games released and the quality of the releases, looking at you Halo Infinite. I feel that that Microsoft has not lived up to their promises of the Series X console. Not one game is using Direct Storage and Velocity Architecture features everything has been delayed. Microsoft has to earn my trust again with Game Pass.
@EvenStephen7 Exactly - I blame the Brit’s for Gollum as well ….
@OrfeasDourvas Except it doesn't. They could have closed. The CMA couldn't prevent it if they wanted to. At worst games would have been published by a different company. You know, the practice multiple developers use already.
Microsoft chose not to go forward. Their voluntary action on this occasion speaks nothing for the future.
If the CMA screws them over after voluntarily delaying this for them, I promise Microsoft will not do it again.
I wonder what the CMA’s families children will find under their Xmas 🎄 this year…
@InterceptorAlpha @OrfeasDourvas it's all about creating some good faith between the two entities. Yes, Microsoft could close the deal and suffer/deal with the consequences later; deciding how to best keep doing business in the UK if the CMA can't be swayed. But by delaying the acquisition now and furthering negotiations with the CMA, Microsoft are essentially saying "look, we want to and can make this acquisition right now, but we are willing to play ball and make some concessions so the UK market isn't affected". I agree though that if by the beginning of October it looks like the CMA won't budge, Microsoft will push the acquisition through anyway. They've shown that they're willing to compromise and meet the CMA halfway; now the ball is in the CMA's court.
@InterceptorAlpha Personally, I'm with you.
I don't trust the CMA as far as I can throw them and I would have closed the deal as soon as I was allowed to.
But that's why we are neither the CEO of Xbox.
These people play 9D chess and when they do something, they've probably looked at all other outcomes.
Of course I wanted this to be over asap and it bums me out that now it's October.
But it's probably the least painful way to do it for MS.
@AlwaysPlaying probably death threats and DDOS attacks if the internet's prior record is anything to go by, unfortunately.
@OrfeasDourvas October is the deadline allowing for further extensions. CMA have indicated a resolution in August
Technically i believe that MS can still close in the US at ANY time if they see fit, if they think the UK is going left I believe.
So it's just a minor delay.
Interesting thought: It's very likely that, should the deal not close by October, ABK will start its marketing cycle for MW3 under its current terms regardless what MS and Sony agreed.
This would likely mean locking the game at a 20%/80% rev share, and no Game Pass until fall 2024, this would actually be a win situation for MS, since they would get more money, and at least for one more year GP wont be "cannibalizing sales", helping MS replenish its saving accounts.
I'm curious...
If/when the deal happens and M$ own ActiBlizz, will the original and sequel show up on GamePass?
Spider-Man and Spider-Man 2: Enter Electro
The first was on the N64 and PS
The second only on the PS
I understand WHY they're being deferential to the UK/CMA, but I truly wish they would just close in the US, forcing the CMA to understand the consequences of their idiotic decision to block, which wasn't grounded in any form of reality.
As long as they let the UK hold them up, the CMA can continually find ways to drag this out. The longer it gets strung along, the more opportunities other agencies (specifically the FTC) have to throw wrenches in the program (their administrative hearing, for example).
@Nydius
If you read the press release of the extension between AKB and MS, there are escalating costs to MS beginning August 29th if they walk away. I doubt MS wants to pay those, so in my opinion the deal will be closed before August 29th. They have just left some buffer time just in case negotiations with the CMA take longer than expected.
I am planning on playing some AKB games I do not have on XB GamePass this fall/Christmas!
@Spider-Kev Probably not because Sony has the rights to Spider-man video games now, so unless Sony okays it...
@Tasuki @spider-kev Sony actually only has the rights for the films (though they have to make a film every five years or the rights return to Marvel).
When it comes to games, Sony does not have the rights to the character — they just have the licensed rights to the version they made with insomniac (remember, Marvel first approached Xbox with the chance to make a game and MS turned them down — but they could have chosen Spidey). Understandably this is a bit confusing considering the exclusive PS games and the PS-exclusive Spidey appearance in Square’s The Avengers.
Each project Marvel makes with a studio is essentially a shared ownership of that project alone — this means Sony technically co-owns the original Spidey that Insomniac made (with the approval of Marvel of course). A different version of Spider-Man can show up in other games (e.g., Marvel vs Capcom, cameoing in another game) or even flat-out in a different standalone game — though Marvel and Sony surely signed an agreement they would prevent something like Marvel turning around making a competing Xbox exclusive at the same time (and considering how successful PS Spidey is, Marvel is probably not interested anyway). But this wouldn’t apply to legacy games.
That said, 100% agree it’s a snowball’s chance in Hell we see the old Spidey games on Xbox due to licensing headaches. There are more parties involved than just Activision and Marvel. It’s not impossible, but highly unlikely — especially for the lopsided effort/reward equation (it’s a lot of work and red tape for not a lot of payoff).
@Tasuki
1: lease rights
2: not to the old games
@Spider-Kev They have exclusive rights to the characters appearing in video games, it was part of the deal they made to have Spider-man in the Marvelverse.
They would have to get the following parties to agree. Sony, Disney, Activision (or MS once the deal goes through). Disney wouldn't be a problem but I can almost guarantee Sony will say no.
@Tasuki They don't own any rights to Spidey in VG they just have rights to the Marvel's Spider-Man IP series. Its why Ultimate Alliance 3, Midnight Suns and endless mobile games all have Spidey in them because Sony have zero say outside of the series they created. As for the original PS1 Spidey games well i think its way more then just having everyone agree, remember Deadpool, Amazing SM and MAU1/2 were all pulled due to licencing so i think more or less impossible to ever see a re-release of past Activision Marvel games not to mention none of the parties would have interest in re-releasing them anyway.
@EvenStephen7 Well laid out. The Spider-man IP situation is confusing and it's not surprising people get it wrong. But you are correct with all this, Sony don't own the IP for games, Spider-man can, and does, appear on other platforms in other games.
But the licensing of the old ABK games makes it hard to envisage these coming to Game Pass, similar to some Transformers titles. Though where there is a will, there is a way, they could always try and renegotiate new deals if they felt it was worth all the needle threading and cost.
Personally I think having some excellent, albeit older, Spider-man games on Xbox would be great. Let's make it happen MS + ABK.
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