It seems unbelievable, or rather the end of a dream turning into a nightmare, at least for Phil Spencer and his team. Early this morning, the CMA (Competition and Markets Authority) gave the green light to the agreement between Microsoft and Activision Blizzard to merge in English territory. This was the final hurdle in the negotiations.
Microsoft’s $68.7 billion agreement to acquire Activision Blizzard has been approved by British regulators after an entire summer of issues and complaints.
The United Kingdom’s Competition and Markets Authority (CMA) has concluded that the transaction can proceed after Microsoft recently restructured the deal to transfer the cloud gaming rights of Activision Blizzard’s current and new games to Ubisoft. The decision clears the way for the deal to be finalized now that the British regulator has given the green light.
Microsoft’s victory is, in part, thanks to Ubisoft
“The CMA has decided to give its consent to Microsoft to acquire Activision Blizzard, excluding Activision’s cloud streaming rights outside of the European Economic Area, on the condition that the sale of Activision’s cloud streaming rights is completed before the completion of the Merger,” reads the CMA statement.
The CMA describes Microsoft’s concession as a “game-changer that will foster competition” in the growing cloud gaming market. “By selling Activision’s cloud streaming rights to Ubisoft, we’ve ensured that Microsoft cannot have an absolute dominance over this significant and fast-developing market,” states Sarah Cardell, CEO of the CMA.
“As cloud gaming expands, this intervention will ensure citizens have more competitive prices, better services, and more choices. We are the only competition agency worldwide that has achieved this outcome,” proudly explains the CEO.
Vice President and President of Microsoft, Brad Smith, states that the company welcomes the decision from the CMA. “We have now cleared the final regulatory hurdle to close this acquisition, which we believe will benefit gamers and the gaming industry worldwide,” Smith said in a Twitter post.
We are now awaiting news from Microsoft regarding the completion of the acquisition. The Verge reported last week that Microsoft was gearing up to close its deal with Activision Blizzard today, Friday, October 13th.
Microsoft now has the green light to finalize its proposed acquisition of Activision Blizzard ahead of the deadline. The closure will mark the end of a 20-month process of approvals and regulatory battles and comes months after EU regulators approved the deal thanks to additional concessions from Microsoft.
Microsoft’s commitments to the European Commission will allow consumers in EU countries to stream through “any cloud gaming service of their choice” all licensed current and future PC and console games from Activision Blizzard.
Now, more than ever, it’s time to subscribe to Game Pass. What an exciting 2024 awaits for gamers worldwide.
