Microsoft, Activision merger under scrutiny as U.K. antitrust watchdog opens inquiry
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The near $70B deal between Microsoft (NASDAQ:MSFT) and Activision Blizzard (NASDAQ:ATVI) is under scrutiny as the U.K.'s antitrust regulatory has opened an inquiry into the deal to see if it will impact rivals.
The Wednesday announcement from the Competition and Markets Authority indicates that the U.K. regulatory body will investigate the pending merger to see if it "may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services."
The CMA is inviting the public to comment on Microsoft's (MSFT) planned $69B acquisition of Activision (ATVI) and expects that period to end on July 20.
The regulatory agency also said it expects an initial deadline of Sept. 1 to see if it will conduct a further, in-depth investigation of the deal.
Other regulatory bodies around the world, including the Federal Trade Commission, are also examining the deal.
Microsoft (MSFT) shares fell fractionally in premarket trading, while Activision Blizzard (ATVI) was down 0.5% to $78.41.
Neither Microsoft (MSFT) nor Activision (ATVI) immediately responded to a request for comment from Seeking Alpha.
Activision (ATVI) shares trade at a significant discount to Microsoft's (MSFT) offer of $95 per share in cash, indicating some doubt in the market.
In February, Berkshire Hathaway (BRK.A) (BRK.B) took a 14.7M share stake in Activision (ATVI) due to the discount.
Earlier this month, Activision (ATVI) closed the acquisition of Boston-based studio Proletariat to better aid players in its hit game, World of Warcraft.