CMA Approves Activision Blizzard Acquisition!

The Competition and Markets Authority (CMA) revealed that it approved the proposed acquisition of Activision Blizzard by Microsoft.

This information was announced by CMA through their social media. If you are interested in the state of the video game industry, you can check out our other articles here.

CMA Approves Activision Blizzard Acquisition

The Competition and Markets Authority (CMA) revealed that it approved the proposed acquisition of Activision Blizzard by Microsoft.

In its initial investigation in April 2023, the CMA found that Microsoft already had a strong position in relation to cloud gaming and blocked the acquisition.

By selling Activision Blizzard’s cloud streaming rights to Ubisoft, the distribution of “important and popular content” such as Call of Duty and Overwatch will not be under Microsoft’s control when it comes to cloud gaming.

With the CMA’s approval, Microsoft now has all the necessary regulatory approvals to close the acquisition of Activision Blizzard officially.

Below is the official statement from the CMA:

In August 2023, Microsoft made concessions that would see Ubisoft, not Microsoft, buy Activision’s cloud gaming rights. This new deal would put the cloud streaming rights (outside the European Economic Area) for all Activision PC and console content produced over the next 15 years in the hands of a strong, independent competitor with ambitious plans to offer new ways to access that content.

As a result of this concession, the Competition and Markets Authority agreed to look again at the deal and launch a new investigation in August 2023. That investigation has been completed today with the Competition and Markets Authority having finalized this narrower transaction.

The new deal will stop Microsoft from locking out competition in cloud gaming as this market develops, maintaining competitive pricing and services for cloud gaming customers in the UK. This will allow Ubisoft to offer Activision content under any business model, including through multigame subscription services. It will also help ensure that cloud gaming service providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.

Competition and Markets Authority

How do Microsoft and Activision Blizzard Executives Respond?

Microsoft vice chairman and president, Brad Smith, said on X:

We are grateful for the CMA’s thorough review and decision today. We have now cleared the final regulatory hurdle to complete this acquisition, which we believe will benefit players and the gaming industry worldwide.

Brad Smith, Vice Chair and President of Microsoft

Through an internal email, Bobby Kotick said to Activision Blizzard employees:

Team,

Today the CMA, the regulatory authority in the UK, approved our transaction with Microsoft.

We now have all the necessary regulatory approvals to close and we look forward to bringing excitement and connection to more players around the world.

Our chairman of the board, Brian Kelly, and I are incredibly proud of all of you and your accomplishments over the past four decades. We are excited for the next chapter with Microsoft and the endless possibilities it will create for you and our players.

With gratitude,

Bobby Kotick, CEO of Activision Blizzard