In a significant milestone for Microsoft Corp., U.K. regulators have granted their approval for the technology giant’s monumental $68.7 billion acquisition of the gaming powerhouse, Activision Blizzard, bringing an end to an extended and dramatic legal journey.
According to the Competition and Markets Authority (CMA), the revised deal for Microsoft’s acquisition of Activision, excluding cloud gaming rights, has received the official green light, ensuring competitive pricing and improved service standards. The CMA conveyed this in an official press release.
Microsoft had, in August, made strategic amendments to its acquisition proposal to win the approval of U.K. authorities. They pledged to license Activision’s cloud streaming rights to Ubisoft Entertainment, a prominent French video game publisher, for a duration spanning the next 15 years. This strategic move resulted in a 1% increase in Ubisoft’s shares on the Paris stock exchange.
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This approach proved to be effective in appeasing the regulator, leading them to reevaluate the deal and initiate a fresh investigation, the results of which were concluded last Friday. With the official approval, Microsoft is now set to meet the extended deal deadline slated for October 18.
A year ago, Microsoft had entered into an agreement to acquire Activision Blizzard at a price of $95 per share. The CMA had, back in April, announced its opposition to the deal and had been actively investigating it for over a year.
Sarah Cardell, the CEO of the CMA, commended the decision to sell Activision’s cloud streaming rights to Ubisoft, ensuring that Microsoft wouldn’t establish a monopoly in this rapidly evolving market. Cardell stressed that this intervention would introduce greater competition, more favorable pricing, enhanced services, and a broader array of choices for consumers, establishing the CMA as a pioneering authority among global competition agencies.
In the midst of these celebrations, Cardell did express criticism towards Microsoft for not utilizing the opportunity to restructure during the initial investigation, opting for measures that the regulator deemed unacceptable. She argued, “Drawing out the proceedings in this manner only leads to wasted time and resources.”
MarketWatch has reached out to Microsoft for their perspective on this historic milestone.
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