In response to the Competition and Markets Authority’s (CMA) approval of Microsoft’s proposed acquisition deal, Activision Blizzard has shared its excitement for the future. The gaming giant stated, “The CMA’s official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox Team.”
In an email sent to Activision employees, CEO Bobby Kotick expressed the company’s anticipation, saying, “We now have all regulatory approvals necessary to close, and we look forward to bringing joy and connection to even more players around the world. Our board chair Brian Kelly and I are incredibly proud of all of you and your accomplishments over the last four decades. We’re excited for our next chapter together with Microsoft and the endless possibilities it creates for you and for our players.”
This announcement comes after the UK’s competition regulator, the CMA, initially blocked the proposed acquisition, causing a delay of more than five months. However, in the latest development, the CMA has given its official approval for the acquisition, citing a significant change in the deal’s terms.
As part of the updated proposal, Microsoft will sell the cloud streaming rights for current and upcoming Activision games over the next 15 years to Ubisoft, should the acquisition go through. This alteration was made to address the CMA’s initial concerns about potential competition issues in the UK’s cloud gaming market. Last month, the CMA gave its preliminary approval after reviewing the amended proposal.
Martin Coleman, the chair of the independent panel overseeing the review of the original proposal, emphasized the importance of cloud gaming and noted that the original merger plans could have hindered its development. However, he acknowledged that the amended deal is “better for competition, better for consumers, and better for economic growth.”
Sarah Cardell, the CMA’s chief executive, underlined the significance of the sale of Activision’s cloud streaming rights to Ubisoft, ensuring that Microsoft won’t have a monopoly in this rapidly growing market. She stated, “As cloud gaming grows, this intervention will ensure people get more competitive prices, better services, and more choice. We are the only competition agency globally to have delivered this outcome.”
However, Cardell also raised concerns about Microsoft’s approach, noting that their tactics were not conducive to engaging with the CMA. She stated, “Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money.”
It’s important to keep in mind that while this approval is a significant step, Microsoft’s acquisition of Activision is not yet finalized. The deal’s deadline is set for October 18, so the finalization is expected soon, and more updates are likely in the coming days.
