Microsoft's $69bn Activision deal cleared by UK regulator
Microsoft just got the green light from the UK Competition and Markets Authority (CMA) for its whopping $69 billion purchase of Activision Blizzard, the brains behind the superhit video game Call of Duty. The deal was on shaky ground due to government pushback in both the US and the UK, but Microsoft's offer to license part of Activision's cloud gaming business to a rival put the CMA's worries to rest, letting the acquisition move forward.
Microsoft Vice Chairman and President Brad Smith's announcement
Cloud gaming rights transfer paves way for deal
To ease the CMA's concerns, Microsoft rejigged the deal, handing over cloud gaming rights for existing and upcoming Activision Blizzard games to Ubisoft. The CMA called this move a "game-changer that will promote competition" in the booming cloud gaming scene. Sarah Cardell, the CMA's top boss, said that selling off Activision's cloud streaming rights makes sure Microsoft can't hog this fast-growing market.
Microsoft and Activision Blizzard set to finalize acquisition
With the CMA's thumbs-up, Microsoft and Activision Blizzard are set to seal the deal in just a few days. Regulators have been keeping a close eye on the acquisition since it was announced in January 2022. In July, Microsoft scored a win in court against the Federal Trade Commission (FTC), which tried to block the deal. The FTC is still fighting its loss to get a preliminary injunction, with a decision due in December.
Activision Blizzard CEO expresses his excitement
Activision Blizzard CEO Bobby Kotick said he and his colleagues "look forward to becoming part of the Xbox team." "We are excited for our next chapter together with Microsoft and the endless possibilities it creates for you and for our players," Kotick further said in an email to employees.
Impact on cloud gaming market and industry
Thanks to the CMA's decision, gamers can look forward to competitive prices, better services, and more options in the ever-growing cloud gaming market. Although cloud gaming is currently a small market, it has significant growth potential for the industry because this technology enables game streaming on various devices like phones and tablets, reducing the reliance on traditional gaming consoles.
