Xbox |OT|

[Ryuu96]

KnowinStuff Said:

ABK is under no obligation to continue past the drop dead date in July. They can take the fee and walk. They do, however, have a fiduciary duty to shareholders. If a proposal to extend the deal looks beneficial, they'll continue on. It is likely they'd ask for increased termination fees, and possible they'd ask for a higher price tag. The low prospects of success are not a deal breaker for activision, as long as there is sufficient additional compensation for failure. Microsoft might have a different calculation. At the same time, they might have heard the footsteps of FTC and CMA regulators, and thought that if they plan future acquisitions, it is not a question of choosing whether to fight, but simply choosing which hill to fight on. All hills are rough terrain to fight the CMA on, but this cloud argument is about the best field of battle they could hope for. With the FTC, potentially being the last one picking a fight over consoles, that might not be a terrible place to smack them hard.

If microsoft thinks they have to fight these forces eventually, then why wait and take the loss here, in potentially the most favorable shot they'll get to take, even if success is unlikely.

Idas Said:

Maybe MS was surprised by the decision, but if Beard was already leading the hearings during the last weeks it likely means that they were getting ready for an appeal:

Mr Beard had represented Microsoft in the late stages of hearings with the CMA, before the regulator blocked the takeover in April.

In any case, MS has hired Monckton Chambers, not a specific lawyer. Monckton is a legal boutique based in London highly specialised in competition law. They are top of the top in the area, specially merger appeals at UK and EU level.

One of the stars of Monckton Chambers, but not the only one, is Daniel Beard, top of the line for more than 15 years. If you want to see why MS has hired Monckton, just check the profile from Daniel Beard:

"A tenacious litigator and a colourful advocate, who is very eloquent in his advocacy." "He'll often see a different angle to everyone else, or an argument that's not super obvious at first. He then runs these ideas in a way that works, all the while remaining pragmatic and sensible." "A barrister who approaches complex disputes well, he is very strategic in his advice."

"Singled out as one of the Bar's leading lights when it comes to telecoms. Respondents effuse that "clients love him and his ability to turn around a losing point in court".

"When you have something tricky, he's the man to work with him." "Tactically, he is a great advocate, and it's always a pleasure to have him on your team."

They won’t be cheap xD But it’s a great choice, no doubt.