Microsoft's Game-Changing Acquisition of Activision Blizzard Receives Green Light in UK

UK antitrust regulators have granted their approval for Microsoft's proposed acquisition of Activision Blizzard, the renowned creator of popular games like "Call of Duty." This decision paves the way for one of the largest tech deals in history. The Competition and Markets Authority revealed on Friday that the merger has received clearance, as the companies agreed to relinquish specific cloud gaming rights. This resolution marks the elimination of the last regulatory barrier standing in the way of the completion of the deal.

The UK competition regulator blocked the deal in April, but Microsoft (MSFT) described the concession as a "game-changer" that would facilitate competitive prices and improved services, according to the CMA's statement.

The CMA was the sole global regulator obstructing the significant acquisition valued at $69 billion during its initial announcement. The completion of the deal is anticipated within the coming days.

The UK regulatory body expressed apprehensions regarding competition within the cloud gaming industry, stating that Microsoft might attempt to make Activision's games exclusive to its own platforms and subsequently raise the cost of user subscriptions, thereby limiting gamers' options.

Activision Blizzard, the video game maker, has become the focus of Microsoft's latest bid to acquire the company. In an effort to address concerns raised by British competition regulators, Microsoft has revamped its bid. This move marks a crucial step towards finalizing one of the largest deals in the history of the tech industry. The Activision building in Santa Monica, California can be seen in the file photo. (AP Photo/Richard Vogel, File)

Richard Vogel/AP

Britain set to approve amended Microsoft-Activision deal

In August, Microsoft and Activision (ATVI) addressed these concerns by proposing a revised deal. The proposed merger restructuring would enable Activision to sell its cloud streaming rights to a competitor, Ubisoft Entertainment, outside the European Union and three other European countries.

The CMA's appeasement was evident as it indicated its probable approval of the revised takeover last month.

"The agency announced on Friday that the new agreement will prevent Microsoft from monopolizing competition in the realm of cloud gaming."

This will also enable cloud gaming providers to utilize non-Windows operating systems for Activision content, ultimately decreasing expenses and enhancing productivity. Activision Blizzard stands as a global leader in game development, responsible for renowned titles like "Call of Duty," "World of Warcraft," and "Overwatch."

Microsoft, known for selling the Xbox gaming console, has a well-received video game subscription service called Xbox Game Pass, along with a cloud-based video game streaming service. The company's acquisition is anticipated to enhance its position in the gaming industry and improve its competitiveness against the market giants Tencent and Sony.

Microsoft President Brad Smith expressed gratitude for the thorough review and decision of the CMAs in a statement on X, the platform formerly known as Twitter. He further stated that they have successfully overcome the last regulatory hurdle towards completing this acquisition.