Microsoft Receives Approval from the UK to Acquire Activision Blizzard
Microsoft has received approval from the UK's competition authority to acquire Activision Blizzard. However, this approval is conditional on Activision transferring cloud gaming rights to Ubisoft.
Why Was Microsoft Blocked From Acquiring Activision Blizzard?
Microsoft signed an agreement to acquire Activision Blizzard for approximately $69 billion at the beginning of this year. However, this agreement was stopped by the British Competition and Markets Authority (CMA) in April.
The CMA was concerned that Microsoft's acquisition of Activision would reduce competition in the cloud gaming market and narrow consumers' options. The CMA felt that Microsoft could push Activision's games away from other platforms by prioritizing its own cloud gaming platform, Xbox Cloud Gaming.
How Was Microsoft's Acquisition of Activision Blizzard Confirmed?
Microsoft has requested permission again to acquire Activision by offering a new deal to address the CMA's concerns. Within the scope of the structured agreement, it was stated that Microsoft will not acquire cloud streaming rights for all existing and new Activision games to be released in the next 15 years, and these rights will be sold to Ubisoft Entertainment SA before Microsoft acquires Activision Blizzard.
After reviewing this deal, the CMA concluded that Microsoft's acquisition of Activision, excluding cloud gaming rights, would not harm market-competitive prices and service. The CMA therefore approved Microsoft's acquisition of Activision.
What Microsoft and Activision Blizzard ZamWill the moment unite?
The merger between Microsoft and Activision Blizzard has not been completed yet. For the merger to take place, other countries must also approve. In addition, the transfer of Activision's cloud gaming rights to Ubisoft also requires a process.
The merger between Microsoft and Activision Blizzard is expected to be completed in 2023. With this merger, Microsoft will become the third largest gaming company in the world.