Oct 13, 2023

Microsoft completes Activision Blizzard acquisition with UK approval.

Last update: Microsoft earlier today received approval from the UK's Competition and Markets Authority (CMA) to complete a $68.7 billion deal to acquire game developer Activision Blizzard. [In January 2022, Microsoft agreed to acquire Activision Blizzard in the largest proposed acquisition in video game history. Activision Blizzard is one of the world's most popular video game developers, owning hit franchises such as Call of Duty, Diablo, Overwatch, World of Warcraft, and Candy Crush. In April of this year, the CMA blocked the acquisition, claiming that it would stifle competition in the cloud gaming sector. In the U.S., the FTC also objected, but after an attempt to block the merger was rejected in July, the CMA's approval was the last hurdle for the deal to go through. [When it blocked the acquisition in April, the CMA presented a list of its most serious concerns and gave Microsoft an opportunity to respond; according to the CMA, Microsoft has agreed to sell Activision Blizzard's cloud streaming rights to Ubisoft, which is now approved The company has been approved. The change will allow Ubisoft to offer Activision Blizzard games on all platforms, and will allow cloud game providers to use non-Windows operating systems for their games. [CMA CEO Sarah Cardell explains the decision:

"With the sale of Activision's cloud streaming rights to Ubisoft, we have confirmed Microsoft's inability to take control of this important and rapidly developing market. We confirmed Microsoft's inability to take control of this important and rapidly growing market. As cloud gaming grows, this intervention will give people more competitive prices, better service, and more choice. We are the only competition agency in the world that has achieved these results.

Microsoft Vice Chairman and President Brad Smith took to Twitter and said:

We appreciate the thorough review and decision of the CMA today. We have now crossed the last regulatory hurdle to complete this acquisition.

Bobby Kotick, CEO of Activision Blizzard, stated in an email to employees sent out Friday:

We now have all the necessary regulatory approvals to complete the acquisition and look forward to bringing joy and We look forward to bringing joy and connection to even more players around the world.

After the deal was finalized, Microsoft issued the following release:

Together we will create new worlds and stories, bringing more of our favorite games to more places so that more players can participate, including mobile, cloud streaming and more, Engage and delight players in new and innovative ways, wherever they want to play.

UPDATE: Activision Blizzard CEO Bobby Kotick announced that he will leave the company at the end of 2023 after sharing news of the acquisition's completion; Kotick will receive more than $375 million from the deal. He said in a statement:

I have long said that I fully support the transition. Phil has asked me to remain as CEO of ABK and report directly to him, and we have agreed to do so through the end of 2023. We both want to work together to ensure a smooth integration for the team and the players."