Microsoft’s ambitious $68.7 billion acquisition of Activision Blizzard has received the green light from UK regulators, marking a significant milestone for the tech giant.
The Competition and Markets Authority (CMA) in the UK has given its final approval, paving the way for the deal to close. Now, all we are waiting for is the finalization of the acquisition, which can take place today.
Strategic restructuring
The decision comes after Microsoft made strategic adjustments to the deal, specifically regarding cloud gaming rights for current and upcoming Activision Blizzard games. These rights were transferred to Ubisoft as part of the restructured agreement, a move hailed by the CMA as a “gamechanger” that will enhance competition in the burgeoning cloud gaming market.
Sarah Cardell, CEO of the CMA, emphasized the importance of this intervention. “As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome,” she stated.
Microsoft’s Vice Chair and President, Brad Smith, expressed the company’s satisfaction with the CMA’s decision. “We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” said Smith.
The road to approval
The acquisition’s finalization is now eagerly anticipated, with reports suggesting it may be concluded today, October 13th. Activision Blizzard CEO Bobby Kotick shared the news with employees, expressing excitement for the possibilities ahead. “We now have all regulatory approvals necessary to close and we look forward to bringing joy and connection to even more players around the world,” Kotick stated.
This development follows months of scrutiny and deliberation, beginning in April when the CMA initially raised concerns about the deal, particularly in relation to cloud gaming. Microsoft and Activision Blizzard responded by restructuring the agreement to address these concerns, leading to an extension of the merger agreement deadline to October 18th.
While the Federal Trade Commission (FTC) continues its efforts to block the deal in the US, Microsoft’s ability to proceed with the acquisition in the UK represents a significant step forward. The closure of this deal, which has undergone a 20-month process of regulatory approvals and legal battles, marks a momentous achievement for both companies.
Additionally, Microsoft’s commitments to the European Commission ensure that consumers in EU countries will have the freedom to stream Activision Blizzard games through any cloud game streaming service of their choice.
In a strategic move, Microsoft will not retain control over cloud gaming rights for Activision Blizzard outside of EU markets. Instead, Ubisoft will hold these rights for a period of 15 years, allowing for potential collaboration with Microsoft for inclusion in Xbox Cloud Gaming.
The UK’s approval of the acquisition serves as a significant milestone and it underscores Microsoft’s commitment to shaping the future of the gaming industry and sets the stage for a new era of possibilities in the gaming world.
Meanwhile, if you are curious about the roadmap of the significant acquisition, make sure to check out our articles on it, such as FTC might start a lawsuit on Microsoft & Activision Blizzard deal, FTC sues Microsoft over Activision Blizzard acquisition, and Microsoft buys Activision Blizzard, finally.
Featured image credit: Aleks Marinkovic on Unsplash
