Microsoft Activision merger closer to clearing final hurdle
Microsoft’s $68.7 billion acquisition of Activision Blizzard is one step closer to clearing its last major obstacle, with the UK’s Competition and Markets Authority (CMA) announcing that the company’s revised agreement “substantially addresses previous concerns and opens the door to the deal being cleared.”
The CMA had initially blocked the merger over fears it would hand Microsoft a 60 to 70 percent share of the cloud gaming market, making it a monopoly player and giving it “incentive to withhold games from competitors and substantially weaken competition in this important growing market.”
However, the CMA has now said that Microsoft’s revised agreement, which includes the sale of Activision’s cloud streaming rights to Ubisoft, “makes important changes that substantially address the concerns it set out in relation to the original transaction.”
Final approval of the deal is still pending, but the CMA’s announcement is a positive sign for Microsoft. If the deal is approved, it will be one of the biggest gaming mergers in history.
Impact on gamers
The impact of the merger on gamers is still uncertain. On the one hand, Microsoft has said that it will continue to make Activision Blizzard games available on all platforms, including PlayStation and Nintendo Switch. On the other hand, some gamers have expressed concerns that the merger could lead to higher prices and less choice for consumers.
It remains to be seen how the merger will ultimately affect gamers. However, the CMA’s announcement is a significant step forward for Microsoft and Activision Blizzard.
Microsoft Activision merger closer to approval with UK regulator’s support
Microsoft’s $68.7 billion acquisition of Activision Blizzard is one step closer to approval, with the UK’s Competition and Markets Authority (CMA) announcing that the company’s revised agreement “substantially addresses most concerns.”
The CMA had initially blocked the merger over fears it would give Microsoft a dominant position in the cloud gaming market. However, Microsoft’s revised agreement, which includes the sale of Activision Blizzard’s cloud streaming rights to Ubisoft, has addressed most of the CMA’s concerns.
The CMA still wants to ensure that the provisions in the sale of Activision Blizzard’s cloud streaming rights to Ubisoft cannot be circumvented, terminated, or not enforced. However, Microsoft has offered remedies to ensure that those rights are enforceable, and the CMA believes that these remedies should resolve any residual concerns.
The CMA’s announcement is a positive sign for Microsoft and Activision Blizzard. If the deal is approved by the CMA and other regulators, it will be one of the biggest gaming mergers in history.
What does this mean for gamers?
It is still uncertain what the impact of the merger will be on gamers. Microsoft has said that it will continue to make Activision Blizzard games available on all platforms, including PlayStation and Nintendo Switch. However, some gamers have expressed concerns that the merger could lead to higher prices and less choice for consumers.
It remains to be seen how the merger will ultimately affect gamers. However, the CMA’s announcement is a significant step forward for Microsoft and Activision Blizzard.
We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18…
— Brad Smith (@BradSmi) September 22, 2023
Yes, it is impressive that Microsoft has managed to turn the deal around after facing opposition from regulators. The sale of streaming rights to Ubisoft seems to have been a key concession that helped to address the CMA’s concerns.
If the CMA approves the deal, it will be a major victory for Microsoft. The acquisition of Activision Blizzard would give Microsoft access to some of the most popular video game franchises in the world, including Call of Duty, Overwatch, and World of Warcraft. This would strengthen Microsoft’s position in the gaming market and make it more competitive with Sony and Nintendo.
It remains to be seen how the merger will ultimately affect gamers. However, Microsoft has said that it will continue to make Activision Blizzard games available on all platforms, including PlayStation and Nintendo Switch. This suggests that gamers may not see a lot of immediate changes.
Overall, Microsoft’s successful appeal of the CMA’s decision is a significant development in the gaming industry. It will be interesting to see how the deal plays out in the coming months and years.
