​Microsoft will likely have to make concessions to get the EU to approve one of the biggest takeover deals in tech history. The European Commission has opened an investigation into Microsoft’s 69 billion bid for Activision Blizzard, the company known for its Call of Duty game.

“The Commission’s preliminary investigation indicates that the transaction could significantly lessen competition in the console and computer video game distribution markets, including multi-game subscription services and/or cloud-based game streaming services, as well as PC operating systems,” the statement said. CE. statement.

The Commission is particularly concerned that by acquiring Activision Blizzard, Microsoft could block access to Activision Blizzard’s console and PC video games, especially prestige games such as Call of Duty.

Microsoft has a market capitalization of over $1.7 trillion, while Activision Blizzard is valued at $56 billion.

Microsoft announced in January that it would pay $68.9 billion for the company that developed games like Call of Duty, World of Warcraft and Candy Crush, a company that has been hit by internal scandals, in 2021.

If approved, the acquisition could increase Microsoft’s gaming revenue by 50% and shows just how powerful the company is under Satya Nadella. Microsoft is a business software powerhouse and cloud computing giant, and with its acquisition of Activision, it’s “training” to become a force in the metaverse, and it’s also sending a clear message to Facebook.

Under Nadella, Microsoft has shown a huge appetite for acquisitions, with two of the biggest in its history: $26 billion for Linkedin in 2016 and $16 billion for Nuance Communications Inc in 2021.

Activision Blizzard’s market cap is $56 billion, a far cry from its February 2021 peak of $80 billion. However, at the end of 2021, the market capitalization fell below $46 billion, but after the acquisition announcement, the market capitalization was more than $60 billion.

Source: Dreamstime.com