Microsoft has finished acquiring Activision Blizzard, the company responsible for popular games like “Call of Duty,” marking a major tech deal.
In a recent announcement to the US Securities and Exchange Commission, Microsoft revealed that Activision Blizzard had officially become a fully-owned subsidiary.
On the same day, UK antitrust authorities granted their approval for the acquisition, removing the last regulatory obstacle to sealing the deal.
The Competition and Markets Authority (CMA) in the UK gave the green light after both companies agreed to relinquish certain cloud gaming rights.
The CMA described this concession as a “game-changer,” as it would lead to “competitive prices and better services.”
Microsoft initially revealed this deal in early 2022, but it faced a setback when the UK competition regulator blocked it in April.
At that time, the acquisition was valued at $69 billion.
The UK regulator was concerned about competition in the cloud gaming market.
They feared that Microsoft might make Activision’s games exclusive to its platforms, potentially raising user subscription costs and limiting choices for gamers.
In August, Microsoft and Activision addressed these concerns by proposing a modified merger.
This new plan allowed for the sale of Activision’s cloud streaming rights outside of the European Union and three other European countries to Ubisoft Entertainment, a competitor.
The CMA was satisfied with this proposal, signaling their intention to approve the revised takeover.
According to the CMA, this new arrangement will prevent Microsoft from monopolizing the cloud gaming market.
It will also promote the use of non-Windows operating systems for Activision content, reducing costs and enhancing efficiency for cloud gaming providers.
Activision Blizzard is renowned as one of the world’s largest video game developers, creating not only “Call of Duty” but also games like “World of Warcraft” and “Overwatch.”
Microsoft, known for its Xbox gaming console, offers a popular video game subscription service called Xbox Game Pass and a cloud-based video game streaming service.
This acquisition is expected to bolster Microsoft’s position in the gaming industry and make it a stronger competitor against leaders like Tencent and Sony.
In a statement on X, formerly Twitter, Microsoft President Brad Smith expressed gratitude for the thorough review and decision made by the CMA.
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