UK nears greenlighting Microsoft's $69bn Activision Blizzard buyout
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The United Kingdom's regulatory body says that Microsoft made substantial restructuring to its previous blocked proposal to address anti-trust concerns.
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Microsoft logo displayed on a small screen with virtual soldiers in the background representing the Call of Duty game created by Activision Blizzard. (AP)
The United Kingdom announced on Friday that it was edging closer to granting approval for Microsoft's ambitious $69-billion bid to acquire Activision Blizzard, the renowned creator of the "Call of Duty" video game series, following the successful resolution of regulatory concerns.
The Competition and Markets Authority (CMA), which issued in February preliminary findings suggesting that the takeover could harm competition and consumer choice, affirmed today that the "revised deal incorporates significant alterations" and indicates a path toward potential approval of the acquisition.
Microsoft, widely recognized for its Xbox gaming console, had submitted a revamped proposal to the CMA just last month, following the initial version's rejection. Microsoft embarked on this bid in early 2022 with the objective of becoming the world's third-largest gaming company by revenue, following China's tech giant Tencent and Japan's Sony, the creator and producer of PlayStation.
Nonetheless, the acquisition of Activision Blizzard, the proud owner of iconic gaming titles such as "World of Warcraft" and "Candy Crush," has faced rigorous scrutiny from regulatory bodies.
Microsoft not to acquire Activision cloud gaming rights
In response to the initial objections, CMA Chief Executive Sarah Cardell expressed in Friday's announcement, "Microsoft has undertaken substantial restructuring of the deal to proactively address our original concerns."
As part of the revamped agreement, Microsoft will no longer acquire Activision's cloud gaming rights; instead, these rights will be transferred to Ubisoft Entertainment, a distinguished French game developer.
Colin Raftery, Senior Director of Mergers at the CMA, commented, "This marks a novel and significantly revised arrangement, assuring that the cloud distribution of these pivotal games remains within the purview of a robust independent provider, Ubisoft, rather than falling under Microsoft's jurisdiction."
Questions were also raised about whether Microsoft would make the game exclusive to Xbox and PC, potentially impacting PlayStation sales.
Assuring Call of Duty fans, Microsoft and Sony announced earlier in July an agreement that ensures that the popular game will continue to be available on Sony PlayStation for another decade, even if Microsoft successfully acquires Activision Blizzard.
Microsoft announced that it was acquiring the video game producer for nearly $70 billion last year, possibly the priciest-ever tech acquisition, and this deal would see Activision Blizzard CEO Bobby Kotick walking away with $390 million.
The acquisition will see changes for all gaming platforms, especially those on consoles other than Microsoft's Xbox, and even for mobile gaming.
Beyond the United Kingdom, the European Union cleared the deal in May, whereas the US antitrust regulator temporarily suspended its efforts to block the acquisition in late July, following a legal setback.
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