UK regulators have given the green light to Microsoft’s revised offer to buy Activision Blizzard, the company behind the popular Call of Duty video game.
This comes after they initially blocked the original $69 billion deal in April.
The Competition Markets Authority (CMA) had concerns about the first offer, but it’s now satisfied with the changes made by Microsoft.
As part of the new deal, Microsoft will allow France’s Ubisoft to distribute Activision’s games on consoles and PCs through cloud services.
However, the CMA did not shy away from criticizing Microsoft’s previous behavior.
Earlier, when the takeover was blocked, Microsoft’s president, Brad Smith, had said it was “bad for Britain.”
CMA’s chief executive, Sarah Cardell, expressed her displeasure, saying, “Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA.
“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.”
The CMA noted that the revised deal would ensure competitive pricing in the gaming industry and offer more options and improved services.
Sarah Cardell added, “With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market.”
Microsoft’s Brad Smith welcomed the CMA’s decision, calling it the “final regulatory hurdle” to complete the deal, while a spokesperson for Activision Blizzard saw it as “great news.”
This acquisition is a significant development in the gaming industry, solidifying Microsoft’s position as a major player.
This has caused concern for its main competitor, Sony, the owner of the PlayStation console.
Sony has opposed the deal, fearing that major titles like Call of Duty could eventually become exclusive to Xbox.
Although PlayStation currently outsells Xbox, in the world of entertainment platforms, having access to top content is the key to success.
Sony, too, has been known to acquire successful studios.
However, Activision Blizzard is in a league of its own, and Microsoft is well aware of this fact.
In a notable example, another major studio, Bethesda, launched its highly anticipated game, Starfield, in 2023, exclusively on Xbox and PC.
The reason? Microsoft owns Bethesda.
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