Microsoft
End of the drama: Xbox and Microsoft can now complete the purchase of Activision Blizzard
An agreement that has now been officially concluded.
An intense chapter in the video game industry is coming to an end. Xbox and Microsoft can now complete the purchase of Activision Blizzard after the UK’s Competition and Markets Authority (CMA) officially approved the deal. Last September, the CMA provisionally approved the deal, but today, after a consultation period, the multi-billion dollar acquisition is now a reality.
A historic purchase for which Microsoft paid 68,700 million dollars and which has been a long process to be officially completed. The British CMA proved to be the last hurdle for the American company, after Judge Corley ruled in its favor last July, thus losing the process to the FTC (US Federal Trade Commission). The UK agency blocked the deal because of its impact on the cloud gaming market, so Xbox agreed to sell Ubisoft the cloud streaming rights to all Activision Blizzard games released over the next 15 years.
Xbox and Activision Blizzard, a long takeover process
Several media announced last week that the deal could close this Friday, October 13, 2023. The executive director of the CMA, Sarah Cardell, has spoken about what has happened, dedicating a few words to what has undoubtedly been a long and hard process: “The CMA is resolute in its determination to prevent mergers that harm competition and deliver bad outcomes for consumers and businesses. We take our decisions free from political influence and we won’t be swayed by corporate lobbying.”
Cardell also highlighted the CMA’s role in facilitating the agreement between Microsoft and Ubisoft, stating that “with the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.”
What games will be coming to Xbox Game Pass? Activision Blizzard has made a clear statement about this, emphasizing that they will start adding games sometime next year. All signs point to the deal closing soon, although even though the purchase is very close, agencies such as the FTC are continuing their internal process as they still see the deal as a threat.