Microsoft has successfully closed its $69 billion deal to acquire Activision Blizzard, marking the biggest-ever gaming deal in history. This acquisition will strengthen Microsoft’s position in the video gaming market by giving them access to popular titles such as “Call of Duty.” The deal received approval from the UK regulator, the Competition and Markets Authority (CMA), after Microsoft agreed to sell streaming rights for Activision’s games to address competition concerns.
The completion of the deal is a significant win for Microsoft as it seeks to attract more users to its Xbox consoles and Game Pass subscription service. Currently, Microsoft’s gaming revenue lags behind that of Sony, whose PlayStation consoles outsell the Xbox. By acquiring Activision, Microsoft gains a foothold in the lucrative mobile gaming market, with popular titles like “Candy Crush Saga” and “Call of Duty Mobile” under their umbrella.
Analysts believe that Microsoft’s purchase of Activision is a strategic move to offer gaming content through a subscription service. This deal will provide Microsoft with the necessary content to offer a more robust gaming experience to its subscribers.
While the deal has cleared the hurdle in the UK, it still faces opposition from the U.S. Federal Trade Commission (FTC), which failed to block the acquisition previously. The FTC, however, has stated that it will “assess” Microsoft’s agreement with Ubisoft Entertainment before making a decision. Analysts anticipate that any challenge from the FTC would result in limited concessions from Microsoft in the future.
The CMA’s approval of the deal was a significant victory for the regulatory body. The CMA had initially blocked the acquisition in April due to concerns about Microsoft’s potential dominance in the cloud gaming market. The regulator commended Microsoft for their concession on streaming rights, stating that it will prevent the tech giant from monopolizing the market and ensure competitive prices and services for UK cloud gaming customers.
The CMA’s decision was made independently and without political influence. While the regulator sees this as a victory, industry experts caution against over-regulating the tech sector, as it could hinder business growth and discourage investment. The European Commission had previously given its approval to the deal in May, accepting Microsoft’s commitments to license Activision’s games to other platforms.
Overall, the completion of this deal marks a significant milestone in the gaming industry and solidifies Microsoft’s position as a major player in the market.