After successfully overcoming regulatory hurdles in the US and EU, Microsoft has cleared its final obstacle in acquiring Activision Blizzard with the approval of the UK’s Competition and Markets Authority (CMA).
This green light allows Microsoft to proceed with the monumental deal, valued at a staggering USD 69 billion, solidifying its position as a major player in the gaming industry, next to Sony and Tencent.
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Microsoft tweaks the deal to appease CMA
To get the final approval, Microsoft had to strategically restructure the deal in order to satisfy the CMA’s concerns.
As part of the agreement, Microsoft will transfer cloud gaming rights for Activision titles to Ubisoft, effectively resolving the CMA’s main issue with the acquisition.
This decision means that Microsoft will be unable to obtain licenses for cloud gaming rights related to existing or future Activision Blizzard titles for the next 15 years.
The sale of Activision’s cloud streaming rights to Ubisoft will prevent the distribution of important, popular content – including games such as Call of Duty, Overwatch, and World of Warcraft – from coming under the control of Microsoft in relation to cloud gaming. The restructured deal substantially addressed the concerns that the CMA had following its original investigation, which concluded earlier this year.
The CMA did identify limited residual concerns with the new deal, but Microsoft gave undertakings that will ensure that the terms of the sale of Activision’s rights to Ubisoft are enforceable by the CMA.
The CMA consulted on these undertakings and is satisfied that this will provide the safety net needed to make sure this deal is properly implemented.
– The CMA official statement
The CMA believes that this move will foster enhanced competition, leading to better outcomes for consumers and economic growth.
Activision Blizzard + King games join Xbox platform
As the monumental deal between Microsoft and Activision Blizzard concludes, Microsoft will now gain ownership of popular titles such as Call of Duty, Overwatch, Candy Crush Saga, and World of Warcraft.
Xbox players can anticipate the addition of numerous Activision Blizzard games to their subscription service, Game Pass.
So many stories to tell, so many characters to meet, so many worlds to explore…
It’s a good day to play: https://t.co/6i3RHmwsNZ pic.twitter.com/y7t2Q5mtrD
— Xbox (@Xbox) October 13, 2023
However, Activision Blizzard recently announced that Modern Warfare 3 and Diablo IV will not be available on Xbox Game Pass this year and will instead be released next year.
FTC persists in reversing the deal, Microsoft reiterate labor neutrality agreement
However, the tenacious US Federal Trade Commission (FTC) continues to wage its battle against the deal, persisting in its efforts to unravel the agreement despite a previous courtroom defeat. Undeterred, the FTC awaits a verdict on its trial verdict appeal before embarking on its own in-house trial, a move that will occur once Microsoft has finalized the deal.
Furthermore, FTC has submitted a request to reopen discovery, aiming to acquire additional information regarding Microsoft’s cloud gaming divestiture deal with Ubisoft and its agreement with Sony to ensure that Call of Duty remains available on PlayStation consoles.
An FTC spokesperson told IGN, “We are focused on the federal appeal process, even though Microsoft and Activision have closed their deal ahead of the scheduled December appeals court hearing.
“The new agreement between Microsoft, Activision, and Ubisoft introduces another aspect to the merger that will impact American consumers. The FTC will evaluate this as part of its ongoing administrative proceeding. We believe this deal poses a threat to competition.”
Today, Microsoft reaffirmed its dedication to the labor neutrality agreement it established with the Communications Workers of America (CWA) in June 2022.
In a blog post, Microsoft’s Brad Smith expressed the company’s commitment to labor principles and innovative union partnerships, emphasizing their unwavering support for employees’ autonomy in choosing their workplace and representatives.
Notably, workers at Blizzard’s Albany, NY offices and Activision subsidiary Raven Software have formed unions, further highlighting Microsoft’s stance on labor rights.
