Breaking: UK Grants Preliminary Approval in Microsoft and Activision Deal: What This Means for the Gaming Industry

Xbox's planned $69 billion acquisition of Activision Blizzard has overcome its final obstacle after months of deliberation. The United Kingdom's regulatory board, the Competition and Markets Authority (CMA), has granted preliminary approval for the deal to proceed. Today, the CMA announced its ruling, stating that the "sale of Activision's cloud gaming rights to Ubisoft effectively resolves previous concerns and paves the way for the deal to be approved." The board is now in talks regarding Microsoft's proposal until October 6, with a final decision expected by the October 18 deadline.

Microsoft's attempt to acquire Activision Blizzard was thwarted earlier this year by the CMA. The regulatory body expressed concerns related to cloud gaming, specifically highlighting worries that Microsoft would restrict the streaming capabilities of Activision's popular games, such as Call Of Duty, to its own streaming service. However, Microsoft has since agreed to grant streaming rights for the Activision portfolio to Ubisoft, clearing the path for the recent decision.

Following the announcement, Activision Blizzard president Bobby Kotick issued a statement to all employees, hailing the ruling as a "significant milestone for the merger" and a testament to their cooperative efforts with regulators. He further noted that this transaction would speed up their aspirations for the future of gaming and enhance their ability to cater to their players' needs.

Announced in January 2022, the acquisition of Activision Blizzard by Microsoft grants the Xbox brand exclusive access to a range of highly successful franchises. Among them are the widely popular titles Call Of Duty, Diablo, Crash Bandicoot, Overwatch, and several others.