Microsoft-Activision Deal Blocked in UK; IAB Reports Stable Digital Growth

by Hannah Dillon on 27th Apr 2023 in News

In today’s ExchangeWire news digest: UK regulators block Microsoft’s USD$68.7bn (~£55.1bn) purchase of Activision Blizzard; the latest IAB report indicates steady growth in UK digital ad spend; and Alphabet reports lower advertising revenue in Q1 2023.

CMA blocks Microsoft-Activison deal

Tech giant Microsoft’s purchase of Activision Blizzard for USD$68.7bn (~£55.1bn) has been blocked by the UK’s Competition and Markets Authority (CMA). The decision from the regulatory body follows months of scrutinising three million documents from both companies, plus over 2,100 emails from the public. In its decision, the CMA stated the deal could “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.”

UK digital spend up, reports IAB

The latest IAB report has found that total UK digital ad spend rose 11% year on year to reach £26.1bn in 2022. The report, the first from IAB to feature insights on retail media, shows 56% market growth in the UK since the start of the Covid-19 pandemic in 2020.

Hannah Biernat, senior manager at PwC, who helped to produce the IAB’s latest report, said, “This year’s Adspend results reflect a stabilisation of the market growth in line with pre-pandemic levels, demonstrating the robustness of the industry and its ability to weather wider spread economic and political uncertainties.”

Alphabet reports dip in ad revenue

Google-parent Alphabet Inc. has reported a drop in advertising revenue for Q1 2023 compared to the same period last year. While Search revenue saw a 2% increase, this was offset by a 2.6% decline in revenue for YouTube ads, plus an 8.3% dip for Google’s advertising network.