Microsoft's Epic Move: Closing the Activision-Blizzard Deal Sooner Than You Think!

Highlights

Microsoft is close to finalizing its acquisition of Activision-Blizzard, which would be the biggest deal in the history of the video game industry.

The deal is currently under investigation by regulatory authorities such as the EU and the CMA. The CMA has granted initial approval, but the FTC has challenged the decision. Microsoft plans to finalize the deal by October 13, 2023, but awaits the final ruling from the CMA. Should the deal fail, Microsoft will be obligated to pay a $4.5 billion termination fee.

Microsoft is expected to finalize its $68.7 billion acquisition of Activision-Blizzard by October 13, 2023, according to reports. Originally announced in January 2022, the acquisition has undergone nearly 20 months of scrutiny by global regulatory authorities. The European Union approved the deal with certain conditions, while the UK's Competition Markets Authority blocked it and the USA's Federal Trade Commission issued a lawsuit against Microsoft. However, Microsoft successfully won the legal battle against the FTC and received court approval to proceed with the acquisition. As of now, the deal is nearing its completion.

As per The Verge's report, Microsoft is aiming to finalize the agreement on Friday, October 13, 2023, according to sources familiar with the matter. However, this date is subject to change pending the final decision of the CMA. In order to gain the CMA's approval, Microsoft has committed to transferring the cloud gaming rights for both current and future Activision games to Ubisoft. The CMA appeared to be satisfied and granted preliminary consent to Microsoft last month. The final decision from the CMA will be announced next week.

Microsoft aims to finalize the deal on October 13, as the extended deadline ends on October 18. If the deal falls through, Microsoft will be obligated to pay a significant breakup fee amounting to $4.5 billion. As part of the extension, certain agreements between Activision and Microsoft have been revised, potentially impacting the future of Call of Duty on platforms such as PlayStation, Nintendo, and others.

Despite receiving approval from various global regulatory authorities and industry veterans, the FTC still intends to block the Microsoft-Activision deal. The FTC has appealed the verdict of the Microsoft trial and plans to hold an in-house hearing while awaiting the decision of the 9th Circuit U.S. Court of Appeals regarding the appeal.

Source: The Verge