The UK Competition and Markets Authority (CMA) recently issued a temporary injunction requiring Microsoft and Activision Blizzard to obtain prior written consent from the UK regulator if they want to acquire each other’s shares. In short, Microsoft and Blizzard cross-shareholdings require the CMA’s consent.
The CMA blocked Microsoft’s $68.7 billion acquisition of Activision Blizzard two weeks ago. Microsoft could have significantly increased its presence in the gaming sector by bringing Call of Duty, Overwatch and World of Warcraft into the fold if it had been able to complete the acquisition.
Regulators have said they are concerned that the deal will lead to less innovation in the cloud gaming business and fewer choices for gamers.
This temporary injunction by the CMA prohibits Microsoft and Activision Blizzard, including subsidiaries, from acquiring each other’s stock without permission from the CMA.
