Game-Changing Merger Alert: Microsoft Set to Finalize Activision Blizzard Acquisition This Week
Microsoft's acquisition of Activision Blizzard reaches an advanced stage, signaling a potential imminent closure, bringing the tech giant one step closer to its goal
Recent updates on the deal suggest that Microsoft's bid to acquire Activision Blizzard may finally be successful, despite the long-standing obstacles posed by the American Federal Trade Commission. It appears that the deal is now on track for closure, with both companies involved. Sony has also signed a Call of Duty agreement with Microsoft, following a prolonged period of legal disputes, and aside from the UK's CMA opposition, most of the significant legal and commercial challenges have been overcome. Unless a major unforeseen issue arises soon, it is highly probable that Microsoft will become the new owner of Activision Blizzard, thereby providing Xbox with a significant advantage in terms of intellectual properties.
According to the contract, Microsoft and Activision Blizzard must finalize the agreement no later than Tuesday, July 18th. In the event that the completion of the deal is delayed beyond this deadline, whether due to third-party antitrust concerns or otherwise, Microsoft will be obliged to pay Activision Blizzard a fee of $3 billion, unless both parties mutually decide to extend the timeline. This indicates that the deal is now progressing rapidly towards its conclusion, provided everything unfolds as planned. Although the acquisition is not yet guaranteed to be finalized, there is positive news for both Microsoft and Activision Blizzard as a federal judge recently issued a ruling preventing the FTC from obstructing the deal. Additionally, with Sony also showing some level of support for the acquisition, it appears that most significant opponents have become more accepting of the idea of Microsoft taking ownership of Activision Blizzard.
Sony's primary concern during the acquisition was the future of the Call of Duty franchise on PlayStation consoles, as Microsoft's financial support was uncertain. However, Sony's decade-long deal with Call of Duty ensures its presence on PS for the foreseeable future, in line with Microsoft and Xbox's promises. It is also in Microsoft's interest to continue the game on PlayStation due to the significant revenue it generates for Activision.
Interestingly, Microsoft appears to be focused on expanding the availability of Call of Duty across various gaming platforms. They have criticized Activision Blizzard for removing the game from Steam, indicating that it is unlikely the franchise will be restricted to a single gaming ecosystem anytime soon.
The clamor surrounding Microsoft's bid to acquire Activision Blizzard has reignited the long-standing rivalry of console wars, where passionate gamers steadfastly advocate for their preferred gaming platform without reaching a consensus on the ultimate champion. Given Microsoft's control over a powerhouse publisher like Activision Blizzard, the forthcoming clash in this enduring "war" promises to be exceedingly captivating.
