Microsoft one step closer to $69 billion purchase of Activision

Sep 22, 2023

Shannon Longworth Anchor/Reporter

By Shannon Longworth (Anchor/Reporter), Brock Koller (Senior Producer), Ian Kennedy (Editor)

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Microsoft is one step closer to purchasing Activision in a blockbuster $69 billion deal. On Friday, Sept. 22, U.K.’s Competition and Markets Authority (CMA) announced the sale of Activision by Microsoft has preliminary approval pending third-party consultation and a final decision.

This comes after the CMA rejected a deal proposed by Microsoft over concerns that “the deal would harm competition in cloud gaming in the U.K.” Microsoft returned to the drawing board and submitted a new deal for the CMA to review in August 2023.

“The CMA considers that the restructured deal makes important changes that substantially address the concerns it set out in relation to the original transaction earlier this year,” the release read.

In the new deal, Microsoft will not purchase cloud gaming rights for Activision games. Instead, the cloud rights will be sold to third-party, Ubisoft Entertainment SA. The reason for this, according to the CMA, is to keep Microsoft from limiting access to Activision’s games or keep them from rivals.

“The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player,” the release read.

Now, CMA has sent the newly structured proposal to a third party for consultation and is expected to make a decision ahead of the Oct. 18 deadline.

Microsoft’s vice chair and president said on X that the company is encouraged by the latest news from the CMA.

We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18…
— Brad Smith (@BradSmi) September 22, 2023

The deal, announced in January 2022, received a lot of pushback from antitrust advocates globally. In July 2023, a U.S. federal judge ruled in favor of the deal following the European Union’s decision in May 2023.

Tags: Activision Blizzard, Call of Duty, Gaming, Microsoft, United Kingdom

MICROSOFT HAS CLEARED ANOTHER HURDLE AS IT LOOKS TO BUY THE VIDEO GAME COMPANY ACTIVISION BLIZZARD.

THIS MORNING – OFFICIALS WITH BRITAIN’S COMPETITION AND MARKETS AUTHORITY SIGNALED IT WILL MOVE TOWARDS APPROVING THE DEAL AFTER MICROSOFT MADE SOME CHANGES TO ADDRESS THE GROUP’S CONCERNS – NAMELY AGREEING NOT TO PURCHASE ACTIVISION’S CLOUD GAMING DIVISION. THOSE RIGHTS WOULD NOW BE SOLD TO UBISOFT.

THE UK REGULATOR SAID THE RESTRUCTURING QUOTE “OPENS THE DOOR TO THE DEAL BEING CLEARED.”

ITS FINAL DECISION – THE LAST NEEDED TO MAKE MICROSOFT’S ACQUISITION OFFICIAL – IS EXPECTED IN MID-OCTOBER.

THE DEAL WAS FIRST ANNOUNCED IN JANUARY 2022 – BUT HAS FACED PUSHBACK BY ANTITRUST ADVOCATES AROUND THE WORLD. IN JULY – A US FEDERAL JUDGE RULED AGAINST THE FEDERAL TRADE COMMISSION’S OPPOSITION TO THE DEAL. THE EUROPEAN UNION ALSO AGREED TO THE DEAL IN MAY.