Microsoft Corp. executives sought to reassure workers in the Xbox gaming unit that there’s a way forward for the approval of the company’s planned $69 billion purchase of Activision Blizzard Inc., while emphasizing that its success in gaming isn’t solely dependent on the deal.
(Bloomberg) — Microsoft Corp. executives sought to reassure workers in the Xbox gaming unit that there’s a way forward for the approval of the company’s planned $69 billion purchase of Activision Blizzard Inc., while emphasizing that its success in gaming isn’t solely dependent on the deal.
The acquisition was vetoed Wednesday by the UK’s antitrust watchdog, a potentially fatal blow for the industry’s biggest-ever deal. At an all-hands meeting for division employees Thursday morning, Microsoft gaming chief Phil Spencer acknowledged the company’s disappointment, saying the UK’s decision will slow the approval process, according to a person who attended the meeting. Still, he said Microsoft’s desire to pursue the deal hasn’t wavered, said the person, who asked not to be identified discussing an internal event.
Spencer told staffers that Microsoft President Brad Smith was up at 2 a.m. Seattle time Wednesday drafting a response to the UK Competition and Markets Authority. He said Chief Financial Officer Amy Hood, who oversees acquisitions, held a senior leadership meeting the same day.
The Xbox chief said the acquisition was intended to speed up Microsoft’s gaming plans, but doesn’t represent the entirety of the company’s gaming strategy, which would move ahead even without Activision, the person said.
The CMA said concerns about the deal couldn’t be solved by remedies such as the sale of blockbuster title Call of Duty or other solutions involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday. Microsoft said it will appeal the decision.
Redmond, Washington-based Microsoft had no immediate comment on the internal meeting.
Read more: Activision CEO Kotick Says Focus Is on Microsoft Merger Appeal
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