Microsoft said it will appeal the UK competition authority’s decision, which reflects a « flawed understanding » of the cloud gaming market.
Activision Blizzard sharply dropped Wednesday after the « Call of Duty » publisher’s pending buyout by Microsoft was rejected by a UK regulator on the grounds it would hurt competition in cloud gaming.
Activision shares fell about 10% at the open to $79.30. The stock dropped below $80 a share for the first time in a month after the $69 billion merger deal was blocked.
« We remain fully committed to this acquisition and will appeal, » Microsoft said about the decision by the UK Competition and Markets Authority related to the deal it struck in January 2022.
« Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job, » the CMA said in a statement outlining Microsoft’s « strong position » in cloud gaming services.
