This acquisition will make Microsoft the third global player in video games in terms of turnover behind Tencent and Sony, thus passing Apple.
Microsoft’s takeover of video game maker Activision Blizzard received final approval from Britain’s competition watchdog on Friday, reversing its earlier decision to block the $69 billion ($65 billion) deal. euros), thus removing the last obstacle to one of the largest technological transactions in history.
The Competition and Markets Authority’s (CMA) blessing had been expected since it gave preliminary approval last month to a revamped Microsoft proposal intended to address concerns the deal would harm competition and players.
This marks a sure victory in the Xbox maker’s quest to acquire Activision, the maker of the popular gaming franchise, Call of Duty.
The companies had agreed to extend the deadline initially set for mid-July to October 18, in order to overcome objections from the British regulatory authority. The approval also allows Microsoft to avoid paying Activision a $4.5 billion penalty if the deal does not close.
“The new agreement will prevent Microsoft from blocking competition in cloud gaming as the market takes off, thereby preserving competitive prices and services for UK cloud gaming customers.”, asserts the supervisory authority in a press release Friday.
Microsoft President Brad Smith said the company was grateful for “the in-depth examination and this final decision”.
“We have now cleared the final regulatory hurdle to complete this acquisition which we are confident will benefit gamers and the gaming industry worldwide”he says.
Activision CEO Bobby Kotick also welcomed the news: “we look forward to being part of the Xbox team,” he assures.
Mission accomplished ?
Since announcing the deal in January 2022, Microsoft has received approval from antitrust authorities in more than 40 countries. The European Union has given the green light by agreeing to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.
The deal, however, faced resistance from British and American regulators, who feared it would stifle competition in the video games sector. Big rival Sony also feared the deal would limit PlayStation players’ access to Call of Duty, Activision’s long-running military shooter series.
The U.S. Federal Trade Commission (FTC) lost a lawsuit it filed to try to halt the deal so its internal judge could review it. The FTC did not give up, it appealed the decision and announced last month its intention to resume the lawsuit. This shows that the US regulator intends to unwind the deal, even after it is concluded.
In the meantime, the British regulator was the last major obstacle to completing the transaction. The CMA’s approval came after Microsoft updated its offer in August.
Under the restructured deal, Microsoft will hand over cloud streaming rights outside the EU and three other European countries to French game studio, Ubisoft Entertainment, for all current and new Activision games that will be released over the next 15 years.
British regulators initially blocked the deal in April over concerns that Microsoft would withhold Activision’s titles from the emerging “cloud gaming” market, where gamers can avoid buying expensive consoles and download games to their devices. tablets or their phones.
Then, in an unprecedented move, the UK watchdog delayed its final decision, saying it needed to review the matter and agreeing with Microsoft to put the appeal process on hold.
One factor was EU approval, granted after Microsoft promised to automatically grant royalty-free licenses for Activision titles on cloud gaming platforms. Another “material change in circumstances” that the watchdog said it had to take into consideration, according to court documents, is an agreement that Microsoft signed with Sony to keep Call of Duty available on PlayStation for at least ten years.