In a long-anticipated move, Microsoft has successfully sealed the deal on its $68.7 billion acquisition of Activision Blizzard. After more than a year and a half of navigating regulatory hurdles, the tech giant announced the completion of this landmark transaction on Friday.
This acquisition represents a significant milestone for Microsoft, as it stands as the company’s largest-ever purchase. With the ink now dry, Microsoft gains access to a treasure trove of popular video game franchises from Activision, including the iconic Call of Duty series, which is poised to bolster its Xbox gaming business. Additionally, Microsoft now has a strategic foothold in the mobile gaming sector, thanks to Activision’s mobile titles like World of Warcraft. This expansion into mobile gaming is particularly noteworthy, given Microsoft’s historical struggle to establish a strong presence in this arena.
However, it wasn’t a smooth road to finalizing the acquisition. Microsoft faced intense scrutiny from antitrust regulators in multiple regions, including Europe, the UK, and the United States. To appease these regulators and ensure the deal’s approval, Microsoft had to make certain concessions. Notably, the company agreed to cede the cloud streaming rights for Activision’s games to Ubisoft for the next 15 years, preventing Microsoft from making Activision’s games exclusive to the Xbox during this period.
This move seemed to have satisfied the UK’s antitrust regulator, which granted approval for the deal this month after initially rejecting it. Meanwhile, in the United States, the Federal Trade Commission (FTC) had sued to block the acquisition but lost in a federal trial that aimed to halt the transaction back in July. The FTC now faces an uphill battle in its efforts to undo the deal, as it pursues appeals in light of the recent court decision.
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