The UK’s Competition and Markets Authority has given its final nod to Microsoft’s acquisition of video game producer Activision Blizzard.
This decision overturns its previous stance to hinder the $69bn (£56bn) transaction, paving the way for one of the most substantial-tech deals ever.
Last month, after reviewing a modified proposal from Microsoft aimed at addressing competitive concerns, the watchdog had hinted at this approval. This green light suggests the imminent success of Microsoft’s pursuit to acquire Activision, the company behind the renowned Call of Duty series.
We’ve cleared the new deal for Microsoft to buy Activision without cloud gaming rights.
In August, Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights.
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— Competition & Markets Authority (@CMAgovUK) October 13, 2023
Both entities decided to push the original mid-July deadline to October 18 to address regulatory concerns. This sanction saves Microsoft from a potential $4.5bn penalty that would have been imposed on them had the deal fallen through.
The regulator commented, “The revised agreement ensures Microsoft won’t monopolize the burgeoning cloud gaming sector, ensuring competitive pricing and services for UK’s cloud gaming enthusiasts.”
Activision Leader Enthusiastic about Future Prospects
Following the green light from UK regulators, Bobby Kotick, the CEO of Activision Blizzard, shared on the company’s website:
The UK’s regulatory body, the CMA, has given the thumbs up to our merger with Microsoft.
All the necessary regulatory permissions are now in place, and we are eager to extend joy and connectivity to even more global players.
Brian Kelly, our board chair, and I are immensely proud of each one of you and the milestones achieved over the past forty years.
Together with Microsoft, we’re eager to embark on this new journey, filled with boundless opportunities for our team and our gaming community.
