British regulators have granted their approval for Microsoft’s acquisition of Activision Blizzard, a deal worth a staggering $69 billion.
This move paves the way for one of the most substantial technology mergers in recent times.
The Competition and Markets Authority (CMA) confirmed its clearance of the deal, excluding cloud gaming rights, asserting that it would promote competitive prices and enhance services.
Microsoft initiated this monumental takeover in January of the previous year, a move that would establish it as the world’s third-largest gaming company in terms of revenue.
However, it faced rigorous scrutiny from regulators, both in the United Kingdom and the United States. Notably, the CMA initially blocked the acquisition in April, citing concerns over its potential to harm competition within the rapidly growing cloud gaming sector.
This sector allows games to be bought virtually, offering players the flexibility to utilize various devices beyond traditional gaming consoles.
Nevertheless, the CMA recently withdrew its objections, leading to the formal approval of the acquisition.
Microsoft’s Vice Chair and President, Brad Smith, expressed gratitude for the CMA’s thorough review, stating that this acquisition’s completion would benefit players and the gaming industry on a global scale.
Microsoft, renowned for producing the Xbox console and having a substantial portfolio of games, such as “Minecraft,” “Elder Scrolls,” and “Fallout,” is already a dominant force in the cloud gaming realm.
Its Game Pass service boasts 25 million subscribers.
Under the new agreement, Microsoft has committed not to assume control of Activision’s cloud gaming segment. Instead, this segment will be transferred to the French studio Ubisoft for a period of 15 years.
Furthermore, concerns over Microsoft making Activision’s games exclusive to Xbox have been resolved, as Microsoft and Sony have agreed to continue releasing “Call of Duty” on the PlayStation.
