Bobby Kotick Provides an Update on the Microsoft Deal
"We believe this merger gives us additional resources to compete."
Internal email to Activision Blizzard staff
As 2023 gets rolling, I just want to say I’m incredibly proud of the hard work everyone has put in to prepare for another successful year at Activision Blizzard. You have demonstrated professionalism, creativity, and a commitment to excellence, and it’s because of these shared values that we continue creating entertainment that brings joy to hundreds of millions of people.
As the new year progresses, I expect you’ll continue to have questions about the future of our business and the status of our deal with Microsoft, especially amid ongoing news about how various governments are evaluating this acquisition. With any transaction of this size, a close review isn’t only common – it’s expected. And given the dynamic and innovative nature of the gaming landscape, the process includes educating those who might not fully understand how our industry works.
Several jurisdictions have already approved our deal, and we continue to provide information to regulators around the world. Today, the Competition and Markets Authority (CMA) in the UK released its provisional findings of evaluating the merger. You may have also seen reports that the European Commission (EC) filed what is called a statement of objections, where the EC sets forth its concerns in writing, and both parties have a chance to respond. Both of these steps from the EC and CMA are a normal part of their evaluation process. It opens the door to discuss various commitments Microsoft can make to assuage concerns as part of the ongoing dialogue and engagement with regulators. We are listening carefully and look forward to continuing a constructive discussion with both groups as we work toward deal close.
We are also confident that the law – and the facts – are on our side. For example, take the role of competition. When governments look at business transactions like this, they often ask how the landscape will change. Will a merger spur innovation and increase competition across an industry? Or will it create an unfair advantage that prevents others with new ideas and better products from competing? In this case, our combined companies will bring more competition to an already crowded field of world-class gaming competitors, including Sony, Tencent, NetEase, Apple, Amazon, and Facebook. We believe this merger gives us additional resources to compete with such giants. When you combine Activision Blizzard’s iconic franchises and mobile expertise with Microsoft’s history of innovation and Xbox’s creative culture and distribution capabilities, we all gain an even brighter future for gaming.
As we continue to prepare for the deal to close, you’ll begin to see notifications or asks for information from your colleagues on the integration planning team. This is all a part of the normal integration process meant to prepare for business continuity on day one after the deal closes. In the meantime, it’s still business as usual, which for us means doing what we do best: delivering great games. Let’s keep the focus on our exciting slate so we can continue delighting our players all around the world.
We’re genuinely excited about the future of gaming and our role in that future. The industry is always evolving, but we have amazing, trail-blazing content that always sets us apart. Thank you for your continued dedication and tireless work.