The much-anticipated $68.7 billion merger between tech giant Microsoft and gaming powerhouse Activision Blizzard has been a topic of intense scrutiny by regulatory authorities worldwide. While the majority of these authorities have granted approval for the merger, the United Kingdom’s Competition and Markets Authority (CMA) had expressed concerns regarding potential consolidation and the impact on cloud gaming.
The initial concerns raised by CMA had the potential to restrict access to Activision Blizzard titles for gamers in the UK and had cast a shadow of uncertainty over the entire deal. Microsoft, however, took a strategic step to address these concerns by granting cloud gaming streaming rights to Ubisoft for both existing and future Activision Blizzard games. This move effectively allayed the CMA’s apprehensions, paving the way for the merger to proceed.
In an official press release, CMA expressed their satisfaction with Microsoft’s decision to share cloud streaming rights with Ubisoft, stating, “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. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services, and more choices. We are the only competition agency globally to have delivered this outcome.”
Brad Smith, President of Microsoft, took to Twitter to express his gratitude for the decision, noting that the final regulatory hurdle had been crossed. He emphasized that the Microsoft-Activision Blizzard deal would bring benefits to players and the gaming industry on a global scale. Bobby Kotick, the head of Activision Blizzard, shared the news with the company’s employees through an email communication.
With the Federal Trade Commission of America (FTC) not imposing a temporary injunction on the merger, both Microsoft and Activision Blizzard can now move forward to seal the deal without further delays. This brings an end to a 20-month-long regulatory battle and marks the successful merger of two major companies. Notably, this is Microsoft’s second significant acquisition, following their purchase of Zenimax, the parent company of Bethesda and Arkane.
As this merger nears its finalization, the question arises: do you view it as a positive development, or do you have concerns about its impact? Feel free to share your thoughts and opinions in the comments below.
