Microsoft Corp. 's $69 billion (~€66 billion) acquisition of Activision Blizzard Inc. has been approved by the United Kingdom
This removes the last major global regulatory hurdle that was holding up the completion of the largest deal in the cloud gaming industry.
The Competition and Markets Authority said on Friday that Microsoft's restructured offer to sell certain gaming rights to French publisher Ubisoft Entertainment SA had addressed and satisfied all concerns, saying it would maintain competitive prices and provide better services.
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The deal has been on hold for months, facing concerns from global antitrust regulators, including an initial veto from the UK. However, its momentum has begun to build unexpectedly as Microsoft has successfully weathered a legal challenge to the deal by the Federal Trade Commission. In May, the European Union approved the deal with the required behavioral measures. The CMA remains the only regulatory body standing in the way of the deal.
"We have sent a clear message to Microsoft, warning that we will block the deal if it does not fully address our concerns and deliver on its promises," said Sarah Cardell, chief executive of the CMA.
Before the summer, Microsoft submitted a new proposal to the CMA with the aim of reaching a deal that would include the popular Call of Duty. This effort is a last-ditch effort to reach a deal. All of this would have a positive impact on the success of the deal.
Microsoft and Activision have agreed to extend their deal until October 18th.
“We have overcome the final hurdle to complete this acquisition, which we believe will benefit gamers and the gaming industry worldwide,” said Brad Smith, Microsoft’s vice chairman and president. Once the deal is finalized, Microsoft will oversee some of the most famous gaming franchises, including Call of Duty, the popular mobile game Candy Crush , and Diablo.
In recent years, Microsoft has been acquiring gaming companies to bring top-tier games to its Xbox consoles, Windows , and Game Pass gaming subscription service. Microsoft is currently the third-largest console company, behind Sony and Nintendo.
Microsoft executives have said the deal is a way for the tech giant to enter the $93 billion mobile gaming market. However, the UK has focused on Microsoft's ability to gain dominance in the emerging gaming market.
By using Activision's games, Microsoft has the opportunity to attract more customers to its cloud gaming service, which is a feature offered by Game Pass. Analysts have noted that cloud gaming has remained fragmented. Both Google and Amazon have struggled to gain market share in this area.
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The European Union said the changes to the deal would not require further approval in Brussels, according to a statement on Friday. The European Commission also stressed that the UK's commitments do not violate Microsoft's commitments to the EU.
Although the Federal Trade Commission (FTC) continues to challenge the deal even after it closes, it is unlikely to affect its final version. The agency said it will pursue an internal lawsuit against the acquisition.
The Competition and Consumer Commission (CMA) also announced on Friday that it had identified “limited remaining concerns” about the new deal, but Microsoft has committed to upholding the terms of the rights sold to Ubisoft by the CMA.
"The CMA's official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox," an Activision spokesperson said.
Source: fortune.com
