Microsoft closes deal to buy Activision Blizzard for $69 billion
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Corporation Microsoft announced the closing of a deal to purchase one of the largest computer gaming companies, Activision Blizzard, for $69 billion. This acquisition could strengthen its position Microsoft in the video game industry after a year and a half of negotiations with regulators around the world, writes NYT.
The deal was approved by the UK Competition and Markets Authority (CMA) earlier this week. This step, the newspaper writes, was the last remaining “regulatory obstacle.” Government officials in various countries have previously said the merger would reduce competition in the video game industry. Activision’s acquisition of Blizzard, according to the NYT, could become an example for other large technology companies of how to “successfully fend off regulatory intervention.”
“The company has agreed to offer permanent access to one of Activision’s flagship franchises, Call of Duty, on the gaming platforms of other companies such as Nintendo and Sony,” writes the NYT.
The deal became known in January 2022. Microsoft called it the largest in the history of gaming (and its own). The deal with Activision Blizzard is worth $68.7 billion ($95 per share). The developer owns the Warcraft, Call of Duty, Overwatch, and other franchises.
In May, the deal was approved by the European Commission, and in July by the San Francisco court. Earlier, the US Federal Trade Commission (FTS) demanded a temporary ban. The UK Competition and Markets Authority (CMA) approved the deal in October, recalling that in August Microsoft made a concession and agreed that the rights to Activision cloud games would be acquired by Ubisoft. The changes to the deal were a condition of the regulator due to concerns that Microsoft could make games from one of the largest developers and publishers exclusive to its cloud gaming service.
The new deal would see cloud rights to all existing Activision games released over the next 15 years transferred to Ubisoft Entertainment. The CMA said this will prevent Microsoft from “blocking competition in cloud gaming as the market matures” and the deal will maintain competitive prices and services for cloud gaming customers in the UK.
According to the NYT, the governments of 16 countries had to review and approve the agreement.
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