The UK competition watchdog has given the green light to Microsoft’s $69 billion acquisition of Activision Blizzard. This approval removes the last significant obstacle for the gaming deal to proceed.
The Competition and Markets Authority (CMA) expressed satisfaction with Microsoft’s revised proposal to sell some gaming rights to Ubisoft Entertainment, addressing competition concerns. With the completion of this deal, Microsoft will have control over renowned franchises like Call of Duty and Candy Crush, marking its entry into the mobile gaming sector.
Global Regulatory Hurdles
The acquisition faced numerous challenges from global antitrust regulators, including an initial veto from the UK. However, the deal gained momentum after Microsoft overcame the Federal Trade Commission’s court challenge. The European Union had already approved the deal in May, leaving the CMA as the last major regulatory body to give its nod.
Microsoft’s Gaming Ambitions
Microsoft has been on a spree of acquiring gaming companies in recent years. Their goal is to bring top-tier games to their ecosystem, which includes Xbox consoles, Windows PCs, and the Game Pass subscription service. This acquisition signifies Microsoft’s intent to make a significant mark in the $93 billion mobile gaming market.
Cloud Gaming Potential
The focus of UK regulators was on Microsoft’s potential to dominate the emerging cloud gaming market. With Activision’s games in its portfolio, Microsoft could attract more users to its cloud gaming service, a part of Game Pass. This move is especially significant given that tech giants like Google and Amazon have struggled to establish a strong presence in cloud gaming.