In a significant move, Microsoft has successfully closed its monumental 69 billion USD acquisition deal of gaming behemoth Activision Blizzard. This strategic merger fortifies Microsoft's position in the video game industry, bringing iconic titles like "Call of Duty" under its umbrella, escalating its rivalry with industry titan, Sony.
BREAKING: Microsoft completes Activision Blizzard acquisition, Call of Duty is now part of Xbox. After 20 months of regulatory battles, Microsoft's giant $68.7 billion gaming deal is complete. Full details here 👉 https://t.co/iIqmWK5JVD pic.twitter.com/AR5tZ9g22o
— Tom Warren (@tomwarren) October 13, 2023
The deal initially faced hurdles in the UK, with the Competition and Markets Authority (CMA) expressing concerns that it could potentially grant Microsoft excessive control over the burgeoning cloud gaming sector. This resulted in the deal being stalled in April. However, a resolution was found after Microsoft consented to sell Activision's game streaming rights to Ubisoft Entertainment. This move ensured that the conditions were adhered to and was dubbed a "game-changer" by the CMA, emphasizing that it was the only global competition body to achieve this specific outcome.
The UK CMA was once the biggest obstacle in the Microsoft-Blizzard acquisition case
With this accord, the CMA believes that it has prevented Microsoft from monopolizing the cloud gaming scene, which in turn will safeguard competitive pricing and service quality for cloud gaming enthusiasts in the UK.
Microsoft had originally announced its intent for this merger in early 2022, eyeing expansion across console, mobile, PC, and cloud gaming domains, setting its sights on competitors like Tencent from China and Sony's PlayStation. While the U.S. Federal Trade Commission resisted the acquisition, their efforts were in vain, and the European Commission granted its approval in May, contingent on Microsoft licensing popular Activision titles such as "Overwatch" and "World of Warcraft" to other platforms.
Microsoft is taking popular Activision Blizzard titles under its umbrella
Despite initial criticisms from both Microsoft and Activision Blizzard about the CMA's reluctance, both companies have expressed their enthusiasm post-approval. Brad Smith, Vice Chair and President of Microsoft, stated, "We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide." Concurrently, Activision Blizzard echoed this sentiment, showing eagerness about their forthcoming integration with the Xbox Team.
We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.
Brad Smith, Vice Chair and President of Microsoft
Analysts and industry experts are closely monitoring the developments, opining that while this might be seen as a triumph for the CMA, excessive regulation of the tech sector could be detrimental. Nonetheless, this acquisition is a testament to the dynamic shifts and consolidations occurring in the global gaming market.
As for us gamers, this earth-shaking acquisition ought to be promising, as Xbox will be able to merge multiple big titles together, and, who knows, they might all join the XGP family one day.
Source: Reuters