The CMA Has Approved Microsoft’s Acquisition Of Activision Blizzard

Microsoft announced a new agreement after U.K. Competition and Markets Authority rejected Microsoft’s $69 Billion acquisition of Diablo and Call of Duty creator Activision Blizzard in the U.K. earlier this month over concerns about cloud gaming. Ubisoft will get 15-year rights for cloud gaming in the U.K. from Activision Blizzard. This deal should quell the CMA concerns. Microsoft received a preliminary OK from the CMA last month. Now, after a few more weeks, Microsoft has been given the final approval by the U.K. regulator agency. 

Microsoft is now in a position to make the purchase and integrate Activision Blizzard into Xbox’s First-Party umbrella. Microsoft has until October 18 to finish the acquisition. Previous reports suggest that Microsoft will complete it today. 

The CMA’s statement on Microsoft’s recent deal: 

This new deal prevents Microsoft from locking in competition for cloud gaming, as this market explodes. It will also preserve the competitiveness of prices and services offered to UK cloud gamers. Ubisoft will be able to use Activision content in any way, even through subscription-based multigame services. This will allow cloud gaming services to offer Activision’s content on non-Windows platforms, which will reduce costs and increase efficiency. 

CMA CEO Sarah Cardell states that the CMA will not be influenced by lobbying from corporations or other political forces. 

Cardell says, “We sent a message to Microsoft saying that the deal will be blocked until they address our concerns in a comprehensive manner and stick to our guns.” We’ve ensured that Microsoft cannot have an unrelenting grip on this rapidly growing market by selling Activision cloud streaming rights. Cloud gaming is growing, so this will allow people to get better service, lower prices and more options. The only agency in the world to achieve this is ours.

Microsoft has no business engaging with CMA using the tactic it uses. Businesses and advisers need to be clear about this. Microsoft could have restructured during our first investigation, but continued to insist on measures that were not working. This is only a waste in time and resources.” 

Microsoft’s control over cloud gaming will be prevented by the CMA, who says that the sale of Activision cloud streaming rights to Ubisoft prevents the distribution of content like Call of Duty Overwatch and World of Warcraft from being under the control of Microsoft. 

In its decision, the CMA states that “the restricted deal significantly addressed the concerns the CMA raised following the conclusion of its initial investigation earlier this year.” The CMA identified limited concerns about the deal. However, Microsoft has given undertakings to ensure that CMA can enforce the conditions of Activision rights being sold to Ubisoft. CMA was consulted about these undertakings. It is happy that it will ensure the deal is implemented properly. 

Brad Smith, Microsoft’s vice president and chief executive officer says: “We appreciate the CMA for its thorough and timely review.” Now that we have cleared the last regulatory hurdle, this deal will close. This acquisition should benefit both players and gaming industries worldwide. 

Activision Blizzard CEO Bobby Kotick, who recently hired James Corden to interview him in an all-hands employee meeting about Guitar Hero and other things, sent the following email to all of the company: 

“Team,

Microsoft’s transaction was approved by the CMA today, the UK regulator. 

Now that we have received all the regulatory approvals needed to close, we are looking forward to connecting and bringing joy to more players across the globe. 

Brian Kelly, our board chair and myself are extremely proud of your achievements over the past four decades. We’re excited for our next chapter together with Microsoft and the endless possibilities it creates for you and for our players.

Thank you for your kind words

Bobby”

To catch up on everything that’s happened so far, first read about Microsoft revealing it was acquiring Activision Blizzard for a colossal $69 billion, and then check out this story about how the CMA blocked this acquisition in the U.K. over cloud gaming concerns. After that, read about how the FTC’s preliminary injunction request was denied by a California judge this summer and then read about Microsoft’s planned to negotiate something satisfactory with the CMA. Read about Microsoft’s proposed Ubisoft deal, too, and then read about why the CMA granted Microsoft a preliminary approval of this deal.  

What Activision Blizzard game(s) do you wish to be added to Xbox Game Pass in the near future? Tell us in the comments!