Microsoft’s Activision Deal Set To Get CMA Approval For Call Of Duty
Microsoft’s ambitions to acquire gaming giant Activision Blizzard, known for iconic titles like Call of Duty, are gaining momentum as the Competition Markets Authority (CMA) in the UK shows signs of approval for the revised deal. This development marks a pivotal moment in the tech giant’s pursuit of one of the most significant acquisitions in the gaming industry’s history.
The initial $69 billion acquisition bid made by Microsoft encountered regulatory hurdles when the CMA expressed concerns about potential anti-competitive effects in the UK’s cloud gaming market. In response, Microsoft presented a restructured deal designed to address these concerns.
Under the revised terms, Microsoft has agreed not to acquire the cloud gaming rights held by Activision Blizzard. Instead, the tech giant will transfer the rights to stream Activision games from the cloud to Ubisoft, a prominent French video game publisher, for a duration of 15 years. This strategic maneuver ensures that cloud streaming for popular games such as Call of Duty, Overwatch, and World of Warcraft will remain outside Microsoft’s control.
Sarah Cardell, Chief Executive of the CMA, reaffirmed the regulatory body’s commitment to preserving competition, innovation, and choice in the cloud gaming sector. She emphasized that the CMA’s consistent stance throughout the process was that the merger could proceed only if these essential aspects of cloud gaming were safeguarded.
While the CMA’s preliminary approval is a positive sign, it also serves as a reminder of the complexities and uncertainties that parties may encounter during intricate mergers and acquisitions. Ms. Cardell pointed out that Microsoft’s decision to present this restructured deal later in the process could have mitigated significant costs, delays, and uncertainties.
Microsoft’s pursuit of Activision Blizzard, renowned for its vast gaming portfolio, including the iconic Call of Duty franchise, has garnered global attention. The acquisition aims to bolster Microsoft’s Xbox console and gaming subscription business, offering gamers access to a broader range of titles and experiences.
Initially, Sony voiced objections to the deal, expressing concerns that Microsoft could restrict access to major games on its PlayStation platform. However, regulatory authorities in the European Union granted clearance for the deal earlier this year.
Microsoft remains optimistic that the CMA will reach a final decision on the revised bid in the coming weeks, following a consultation period. The outcome of this decision will determine the fate of one of the most significant acquisitions in the gaming industry’s history.
For Microsoft, gaining control of Activision’s extensive gaming portfolio opens new opportunities and positions the tech giant uniquely to shape the future of gaming across various platforms, including mobile, consoles, and PC. The deal could usher in a new era of gaming experiences, leveraging the expertise of both Microsoft and Activision Blizzard.
As the gaming industry watches these developments closely, Microsoft and Activision Blizzard are poised to explore innovative strategies, partnerships, and opportunities in the ever-evolving gaming landscape. The potential merger has the potential to redefine the gaming industry’s dynamics and create exciting possibilities for gamers worldwide.
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