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Microsoft isn’t happy with a UK regulator’s math on its Activision Blizzard deal
March 16, 2023
Microsoft’s proposed Activision Blizzard acquisition is at the messy stage. After recruiting Nvidia, Nintendo, and two other cloud gaming companies to help convince regulators to approve its $68.7 billion deal, Microsoft is now criticizing the UK’s Competition and Market Authority’s (CMA) math calculations.
The CMA published a financial model that calculated Microsoft could turn a profit by withholding Call of Duty from PlayStation to draw former Sony fans to Xbox, basing its calculations on profits and losses from Xbox hardware, subscriptions, and games over a period of five years.
Microsoft argues that the CMA’s financial modeling is flawed. The CMA’s model compares gains on a five-year basis to losses on just a one-year basis, and…