UK regulator likely to approve Microsoft's $69 billion Activision acquisition
The UK's antitrust regulator, Competition and Markets Authority (CMA), has indicated that Microsoft's $69 billion acquisition of Activision Blizzard might be cleared, following the divestment of streaming rights to Ubisoft Entertainment. The deal, initially blocked in April due to concerns over Microsoft's potential control of the cloud gaming market, now "substantially addresses previous concerns," according to the CMA.
UK initially blocked the $69 billion acquisition
In early 2022, Microsoft announced its plan to acquire Activision Blizzard, the 'Call of Duty' maker, in the largest gaming deal in history valued at $69 billion. However, the UK's competition regulator blocked the deal in April, citing concerns that Microsoft would gain too much control over the nascent cloud gaming market, potentially stifling competition and innovation.
Ubisoft divestment eases antitrust concerns
In August, Activision Blizzard agreed to sell its streaming rights to Ubisoft Entertainment, a move that has seemingly alleviated the CMA's concerns. The regulator stated that the Ubisoft divestment "substantially addresses previous concerns" regarding Microsoft's acquisition of Activision Blizzard. However, the CMA has identified limited residual concerns with the new deal structure.
Microsoft offers remedies for final approval
To address the CMA's residual concerns, Microsoft has offered remedies that the regulator has provisionally concluded should be sufficient. The CMA is now consulting on these remedies before making a final decision on whether to approve the restructured acquisition. If approved, this deal would mark a significant milestone for Microsoft in expanding its presence in the gaming industry.
