Microsoft completes $69b Activision Blizzard acquisition
UK finally gave the green light
Microsoft has finalised its $69 billion acquisition of Activision Blizzard, marking the largest deal in the gaming industry's history.
The final hurdle was approval from the UK's antitrust regulator, the Competition and Markets Authority (CMA), which acquiesced after Microsoft presented a revised deal.
The CMA had blocked the original bid, but later approved the restructured deal.
Under this new agreement, Microsoft has granted the rights to distribute Activision's games on consoles and PCs via cloud gaming to French video game publisher Ubisoft.
Ubisoft will hold the cloud gaming rights for Activision's content - which includes popular gaming franchises like Call of Duty, World of Warcraft and Candy Crush - outside the European Economic Area (EEA), including EU countries, Iceland, Liechtenstein, and Norway, for 15 years.
After this period, the rights will revert to Microsoft.
The CMA said the revised deal would "preserve competitive prices" in the gaming industry, and increase choices and service quality for gamers.
However, the regulator criticised Microsoft's conduct during the lengthy acquisition process, saying the company's tactics were not appropriate for engaging with the CMA.
Following the deal's completion, Bobby Kotick, CEO of Activision Blizzard, confirmed that he would step down from his role at the end of 2023.
In a letter to staff, he shared his commitment to aiding in the transition.
Microsoft Gaming's CEO, Phil Spencer, emphasised that the acquisition wouldn't limit players' choices and opportunities.
He said, "Whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you are welcome here - and will remain welcome, even if Xbox isn't where you play your favourite franchise."
Microsoft announced its intent to acquire Activision Blizzard in January 2022. The CMA launched a detailed review of the agreement in September 2022.
In February 2023, the regulator said it had provisionally found that the merger might bolster Microsoft's standing in the cloud gaming sector, potentially curtailing competition.
The regulator's evaluation found that Microsoft already wields a substantial presence in the cloud gaming services industry: between 60% and 70%. The CMA said the tech giant could have the financial motivation to make Activision's games exclusive to its own cloud gaming platform, potentially harming competition.
The regulator was concerned that, with approval, Microsoft would gain control over major gaming content, including titles like Call of Duty, World of Warcraft and Overwatch, potentially reinforcing its existing dominance.
Despite the CMA's approval, the US Federal Trade Commission (FTC) - which previously attempted to block the purchase - is still opposing the deal.
The FTC said it would focus on its appeal, but would also assess Microsoft's agreement with Ubisoft.
The European Commission already approved the deal in May, accepting Microsoft's commitments to license Activision's games to other platforms.