Microsoft has successfully wrapped up its groundbreaking $69 billion acquisition of gaming giant Activision Blizzard, marking a pivotal moment in the gaming industry's history. This deal, the largest of its kind, solidifies Microsoft's dominance in global gaming.
UK regulators gave the green light after initial concerns led to a temporary blockage. Competition and Markets Authority stated their worries had been addressed.
Phil Spencer, Microsoft's key figure, expressed his elation, calling the securing of Activision "extraordinary". Activision Blizzard CEO Bobby Kotick confirmed his departure by the end of 2023, emphasizing a seamless transition.
While conceding distribution rights to Ubisoft, Microsoft gains control of gaming behemoths like Call of Duty and Candy Crush, ensuring substantial revenues.
The revised deal earns praise from the Competition and Markets Authority for its commitment to competitive pricing and enhanced services. However, they criticize Microsoft's conduct during the lengthy process.
Brad Smith, Microsoft's president, previously voiced dissatisfaction with the CMA's initial decision. The acquisition, garnering mixed global responses, gained EU approval, with the US watchdog's attempt to halt it rejected.
Ubisoft's acquisition of Activision's cloud streaming rights limits Microsoft's market dominance. Regulators believe this will foster a more competitive cloud gaming landscape.
With regulatory hurdles cleared, Microsoft finalizes the acquisition at $95 per share. Outgoing CEO Bobby Kotick stands to gain $400 million, while Chairman Brian Kelly is set for $100 million.
Microsoft aims to boost Xbox demand and expand its Xbox Game Pass service, offering a vast game library for a subscription fee.
The acquisition solidifies Microsoft's position, second only to Sony in the gaming industry. Sony's concerns about potential exclusivity reflect the industry's emphasis on premium content.
Nicky Stewart, a seasoned consultant, hails the acquisition as a win for gamers worldwide. She anticipates increased options, innovation, and competitiveness in the gaming industry. The CMA's role in securing concessions within the UK market is lauded.
