With Microsoft-Activision deal on life support, sniping ramps up ahead of appeal
Stephen Brashear/Getty Images News
With the industry-record $69B acquisition of Activision Blizzard (NASDAQ:ATVI) by Microsoft (NASDAQ:MSFT) officially iced by UK antitrust regulators, the war of words has begun -- ahead of an appeal with a slim chance of success.
The two presumptive merger partners minced no words Thursday. In a morning interview, Activision Blizzard (ATVI) chief executive Bobby Kotick said the UK Competition and Markets Authority's move to block the deal was a "flawed ruling in every respect" based on judgments that "are not factually correct."
He was looking toward an appeals process that he hoped moved very quickly.
Microsoft (MSFT) President Brad Smith, who had mounted a full-court press for the deal in the UK, was perhaps even more direct, telling the BBC that it's not just that he's disappointed, but that the decision was "bad for Britain."
"This decision ... is probably the darkest day in our four decades in Britain," Smith said. "People are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken.
"There's a clear message here: The European Union is a more attractive place to start a business than the United Kingdom."
CMA Chief Executive Sarah Cardell disagreed, telling the country's Today show "I think this decision shows actually how important it is to support competition in the UK and that the UK is absolutely open for business."
"We want to create an environment where a whole host of different companies can compete effectively, can grow and innovate," Cardell said.
Activision Blizzard stock (ATVI) was calm Thursday, rising fractionally even as the rest of the Communications sector rode a wave higher on the back of strong earnings and a double-digit gain at Meta Platforms. The sector's biggest names were all 2.5% higher or more. In Activision's case, however, it's rebounding from a decline of 11.5% Wednesday in the wake of the UK decision.
Microsoft (MSFT) was 2.5% higher, more in line with gains seen at peer big techs including Alphabet (4% higher), Amazon.com (4% higher), Apple (1.9% higher) and Meta (14% higher).
As for Sony (NYSE:SONY), maker of Microsoft's rival PlayStation platform and the other key party to regulatory decisions on the proposed merger, it was just 0.9% higher at midday Thursday.
More background on the deal's rejection

Activision tumbles as UK blocks Microsoft deal on competition concerns
Why did Activision Blizzard stock slump today?
UK blocking of Microsoft-Activision deal surprises Wall Street analysts