Microsoft-Activision Deal 2025: UK Regulator's Conditional Approval Sparks Industry Buzz
The UK Competition and Markets Authority provisionally approves Microsoft's revamped $68.7 billion acquisition of Activision Blizzard, with key conditions to safeguard market competition.
In a significant development for the gaming industry, the United Kingdom's Competition and Markets Authority (CMA) has provisionally approved Microsoft's revised $68.7 billion acquisition of Activision Blizzard. This tentative approval marks a crucial step toward finalizing what would become the largest gaming merger in history.
Highlights of the Deal
- The UK regulator has given preliminary approval to Microsoft's restructured acquisition plan for Activision Blizzard.
- As part of the revised deal, Microsoft agreed to transfer the streaming rights of Activision's games to Ubisoft Entertainment, ensuring broader access across platforms.
- Microsoft proposed enforceable safeguards to address regulatory concerns, which the CMA is currently evaluating before issuing a final verdict.
Originally announced last year as an all-cash offer, Microsoft's bid faced hurdles when the CMA initially blocked the deal over fears it could reduce innovation and limit consumer choices in the gaming market. To address these concerns, Microsoft committed to licensing Activision's cloud streaming rights to Ubisoft, aiming to maintain competitive balance.
While the CMA acknowledges some lingering reservations about potential loopholes in the streaming rights agreement, Microsoft's proposed remedies are under thorough review. This collaborative approach reflects the regulator's focus on ensuring enforceable terms that protect market fairness.
Notably, European regulators have already approved the acquisition following similar commitments from Microsoft, and the U.S. Federal Trade Commission's attempt to block the merger was overturned in court, clearing significant legal obstacles.
Sarah Cardell, CEO of the CMA, emphasized the importance of timely and credible remedy proposals, stating, "This case highlights the costs and delays that can arise when effective solutions are not presented promptly."
Following the announcement, Activision Blizzard's shares rose by 1.8%, while Microsoft’s stock experienced a slight dip of 0.4% as of Friday morning.
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