Microsoft’s Activision Blizzard deal approved by UK regulators
13.10.2023 - 06:31
/ theverge.com
/ Brad Smith
/ Tom Warren
/ Bobby Kotick
/ Sarah Cardell
By Tom Warren, a senior editor covering Microsoft, PC gaming, console, and tech. He founded WinRumors, a site dedicated to Microsoft news, before joining The Verge in 2012.
Microsoft’s $68.7 billion deal to acquire Activision Blizzard has been approved by UK regulators. The UK’s Competition and Markets Authority (CMA) has concluded that the deal can proceed after Microsoft recently restructured the deal to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The decision clears the way for the deal to close now that the UK regulator has given the green light.
“The CMA has decided to give Microsoft Corporation (Microsoft) consent to acquire Activision Blizzard, Inc. (Activision) (the Parties) excluding Activision’s cloud streaming rights outside of the European Economic Area (EEA) (the Merger) subject to the condition that the sale of Activision’s cloud streaming rights completes prior to completion of the Merger,” reads a statement from the CMA.
The CMA describes Microsoft’s concession as a “gamechanger that will promote competition” in the growing cloud gaming market. “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,” says Sarah Cardell, CEO of the CMA. “As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.”
Microsoft vice chair and president Brad Smith says the company welcomes the CMA’s decision. “We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” says Smith in a message on X (formerly Twitter).
We’re now awaiting news from Microsoft about the finalization of the acquisition. The Verge reported last week that Microsoft was getting ready to close its Activision Blizzard deal today, Friday October 13th.
Activision Blizzard CEO Bobby Kotick emailed all employees today announcing the news. “We now have all regulatory approvals necessary to close and we look forward to bringing joy and connection to even more players around the world,” said Kotick. “We’re excited for our next chapter together with Microsoft and the endless possibilities it creates for you and for our players.”
The CMA’s decision comes months after the regulator initially moved to block Microsoft’s deal in April over cloud gaming concerns. Microsoft appealed that decision with the UK’s Competition Appeal Tribunal (CAT), but both parties put that process on hold in July to make way for Microsoft’s restructured deal that was designed to address the