Microsoft's $69-Billion Acquisition Of Call Of Duty-Maker Activision Approved By UK: All You Need To Know
Although the CMA approved the acquisition, they criticised Microsoft's tactics. CMA Chief Executive Sarah Cardell expressed dissatisfaction with Microsoft's approach during the investigation.
Microsoft's updated bid to acquire Activision Blizzard, the maker of Call of Duty, has received approval from UK regulators, as per several media reports, including the BBC. The Competition and Markets Authority (CMA) stated that the revised offer had sufficiently addressed previous concerns, leading to the approval. The original $69 billion deal had been blocked by the CMA in April. As part of the deal, Microsoft will grant the distribution rights for Activision's games on consoles and PCs over the cloud to French video game publisher Ubisoft.
Although the CMA approved the acquisition, they criticised Microsoft's tactics. CMA Chief Executive Sarah Cardell expressed dissatisfaction with Microsoft's approach during the investigation, stating that they had the opportunity to restructure but insisted on measures that were deemed ineffective. She emphasised that such prolonged proceedings were wasteful in terms of time and resources.
The CMA believes that the revised deal will maintain competitive prices in the gaming industry, offering more choices and improved services to consumers.
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Prior to the UK approval, the global finalisation of the deal, which grants Microsoft ownership of major titles like Call of Duty and World of Warcraft, was pending. The deal has faced varying responses from regulators worldwide, but it has already received approval from the European Union and faced opposition from the US competition watchdog.
CMA's Sarah Cardell highlighted that by selling Activision's cloud streaming rights to Ubisoft, Microsoft's potential stranglehold on the growing cloud gaming market has been prevented.
Microsoft's President, Brad Smith, expressed gratitude for the CMA's thorough review and decision, describing it as the final regulatory hurdle to complete the acquisition. Activision Blizzard also welcomed the approved deal.
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In the restructured agreement, Microsoft agreed to transfer the rights to stream Activision games from the cloud to Ubisoft for 15 years outside the European Economic Area (EEA). Microsoft aims to use this acquisition to boost demand for its Xbox console and enhance its Xbox Game Pass streaming service by expanding its game catalogue.
The acquisition solidifies Microsoft's position as a major player in the video game industry, intensifying competition with Sony, the owner of PlayStation. Sony opposed the deal due to concerns that major Activision titles could become Xbox exclusives over time.
The completion of this deal marks a significant shift in the games industry and sets Microsoft on a path to further dominance, emphasising the crucial role of access to quality content in the success of entertainment platforms.
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