As reported by theBBC, the CMA has approved Microsoft’s buyout of Activision Blizzard King after two years. It said that Microsoft addressed its concerns following itsblock of the acquisition in April.
The CMA blocked the $68.7 billion dealbecause of cloud gaming, as UK regulators feared that the deal would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.” In what proved to be a successful bid to win the CMA over, Microsoft has handed French publishing giant Ubisoft the cloud streaming rights to Activision’s games for the next 15 years.
“We’ve made sure Microsoft can’t have a stranglehold on over this important and rapidly developing market,” the CMA’s Ms Cardell said of Activision’s cloud streaming rights. Regardless, this is now the biggest video game acquisition in history. The second highest, which cost a staggering $56 billion less, was when Take-Two Interactive bought Zynga. It’s also worth noting that Microsoft’s recent acquisition of Bethesda, and Activision’s acquisition of King, are also among the largest buyouts in the industry.
Following the CMA’s approval, Bobby Kotick sent a letter to employees saying, “We now have all the 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.”
Speaking to the BBC, Ms Cardell said, “We were clear that that deal couldn’t go ahead, because it would have harmed competition, and that would have been bad for UK gamers. We stood our ground. We were prepared to defend that decision in court, but Microsoft came forward with a major concession.”
