Microsoft’s $68.7 Billion Acquisition of Activision Blizzard Approved by UK Competition and Markets Authority

Microsoft’s acquisition of Activision Blizzard has taken a significant step towards completion as the UK Competition and Markets Authority (CMA) officially approved the $68.7 billion deal. Last month, the CMA provisionally agreed to allow the deal but needed further consultation to address concerns about potential disruptions to competition. The original deal was blocked by the CMA in April due to worries about its impact on the cloud gaming market. Microsoft then made revisions, including selling some cloud gaming rights for Activision titles to Ubisoft, to address these concerns.

According to the CMA, the new deal prevents Microsoft from monopolizing the cloud gaming market and ensures competitive prices and services for UK cloud gaming customers. “The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” the CMA stated in a press release.

CMA Chief Executive Sarah Cardell emphasized the CMA’s determination to address their concerns and praised the sale of Activision’s cloud streaming rights to Ubisoft as an essential step in preventing Microsoft from having too much control in the market. Cardell criticized Microsoft’s approach to dealing with the regulator, stating that they had the opportunity to restructure during the initial investigation but chose not to do so, leading to a waste of time and money.

The deal could be finalized as early as today, with October 13 being the targeted closure date. This timeline aligns with the October 18 merger deadline agreed upon by Microsoft and Activision due to opposition from regulators. However, even if the deal is closed soon, Microsoft may still face opposition from the Federal Trade Commission in the US. The FTC has confirmed that it plans to challenge the deal in-house.

In conclusion, Microsoft’s acquisition of Activision Blizzard has been officially approved by the UK’s Competition and Markets Authority. The deal aims to prevent monopolization in the cloud gaming market and ensure competitive prices and services for UK customers. The finalization of the deal is expected soon, but potential opposition from the FTC in the US remains a possibility.