While Microsoft’s proposed acquisition of Activision Blizzard is under regulatory scrutiny in the West, some Chinese companies have supported the deal. The country’s gaming giant Tencent is reported to be one of them.
- Two Chinese game companies, including Tencent, recently came out in support of the Activision Blizzard acquisition, according to Dealreporter (via Seeking Alpha).
- However, there is at least one local firm that has expressed its concerns over the merger to the country’s antitrust regulator, State Administration for Market Regulation (SAMR).
- The exact ratio of supporters to opponents of the deal among Chinese companies remains undisclosed.
- Last April, Microsoft filed its bid to acquire Activision Blizzard with the Chinese watchdog under a simplified procedure. The SAMR later declined the request, saying that it will review the deal under normal procedure.
- The Chinese regulator wanted first to examine the concerns that other global regulators, including the European Commission, have over the merger. This includes potential damage to market competition and the possibility of Microsoft making Call of Duty and other Activision Blizzard games exclusive to Xbox.
- Tencent hasn’t publicly confirmed its support of the $68.7 billion deal, but given its long history of acquisitions, it wouldn’t be a surprise to see the Chinese tech siding with Microsoft.
On February 21, Microsoft will defend the proposed acquisition in a closed hearing with the European Commission. The company was also sued by the US Federal Trade Commission last year, not to mention the ongoing investigation by the UK’s Competition and Markets Authority, which recently offered Microsoft to acquire Activision Blizzard without the Call of Duty IP.
