Microsoft Corp (NASDAQ:MSFT) has secured approval from the UK's Competition and Markets Authority (CMA) for its landmark $68.7 billion acquisition of Activision Blizzard (NASDAQ:ATVI), marking the largest deal in the gaming sector's history. The approval, announced today, concludes a 20-month regulatory process and comes after Microsoft restructured the deal to address concerns over cloud gaming dominance.
Initially, the CMA had blocked the acquisition, but Microsoft appealed this decision at the Competition Appeal Tribunal (CAT). To alleviate the CMA's concerns, Microsoft transferred Activision's cloud gaming rights to Ubisoft for a 15-year duration.
The Federal Trade Commission in the U.S. and the European Union have also given preliminary clearance to the restructured deal, removing all regulatory barriers. As part of the concessions made to EU regulators, Microsoft is required by the European Commission to allow EU consumers to stream Activision Blizzard games via any cloud service. Ubisoft will license these games back to Microsoft for Xbox Cloud Gaming.
The announcement of the approval led to a temporary halt in trading of Activision's shares due to "pending material news." The acquisition, which was initiated by Microsoft on January 18, 2022, is expected to be completed by its deadline on October 18, 2023.
Activision Blizzard is known for popular games such as Call of Duty and World of Warcraft. The company will now become part of Microsoft's portfolio, expanding the tech giant's reach in the gaming sector.
A related case between FTC and Microsoft, which revealed Xbox secrets, is currently awaiting a decision from the Ninth Circuit Court of Appeals in December. However, without a preliminary injunction, this case does not impede the completion of the Activision Blizzard acquisition.
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