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25 September 2023
27 September 2023
Microsoft's bid to buy Activision Blizzard has made significant progress as the UK competition regulator has given preliminary approval to the tech giant's modifications to its $68.7 billion acquisition of the Call of Duty developer.
Central to the amended proposal submitted by the two US companies to the Competition and Markets Authority (CMA) was an agreement to transfer Activision's cloud streaming rights to French competitor Ubisoft. Under the deal, Microsoft would be restricted from exclusively marketing Activision games such as World of Warcraft and Diablo on its own cloud streaming service, Xbox Cloud Gaming.
In January 2022, Microsoft entered into an agreement to acquire Activision, one of the world's most popular video game publishers, in a deal worth $68.7 billion. The deal is the largest video game acquisition in history and the largest acquisition Microsoft has ever made. If completed, it would make Microsoft the third largest gaming company in the world by revenue, behind Tencent and Sony.
The regulator CMA has previously expressed concerns about the potential consequences of the acquisition, particularly the reduced innovation and limited opportunities for players in the fast-growing cloud gaming sector. The CMA estimates that Microsoft already controls approximately 60-70% of the global market for cloud gaming services.
The new phase of CMA negotiations will run until 6 October, clearing the way for final approval ahead of the extended deadline for completion of the transaction, which is set for 18 October.