On October 13, Microsoft’s ambitious $69 billion acquisition of Activision Blizzard, known for its popular Call of Duty game series, received the final green light from the UK’s Competition and Markets Authority (CMA).
The approval came after the CMA reversed its initial decision to block the transaction. Microsoft’s commitment to foregoing royalties on streaming games for ten years played a pivotal role in addressing the CMA’s competition concerns.
Had this deal not been finalized, Microsoft would have been at risk of incurring a hefty $4.5 billion penalty payable to Activision. The acquisition now stands as one of the most significant in the tech sector, having received endorsements from over 40 countries worldwide.
The CMA’s initial hesitance was due to concerns about Microsoft’s potential dominance in the emerging cloud gaming market. This led to a restructuring of the deal, wherein Ubisoft, a French game maker, was designated to acquire the cloud gaming rights of Activision, rather than Microsoft. As a result, platforms outside of Windows will also be able to access content from Activision, fostering a more competitive cloud gaming environment.
Although the acquisition has received approvals from regulators in over 40 countries, including the European Union in October, it’s worth noting that the US Federal Trade Commission is still appealing its case and intends to unwind the deal after it closes.
Both Microsoft and Activision are optimistic about the acquisition. It is widely viewed as beneficial for gamers and the broader gaming industry, signifying new horizons in collaborative tech and gaming ventures.