Technology
Friday, October 13th, 2023 1:40 pm EDT
Key Points
- Microsoft’s Acquisition of Activision Blizzard: Microsoft has successfully completed its acquisition of video game publisher Activision Blizzard for $69 billion, marking the largest deal in Microsoft’s history. This acquisition comes after addressing regulatory concerns from U.K. and European regulators and gaining a favorable ruling from a U.S. district judge.
- Expansion of Microsoft’s Gaming Portfolio: The deal provides Microsoft with a significant portfolio of video game franchises, including popular titles like Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater, and Warcraft. While Activision Blizzard generated $7.5 billion in revenue in its latest fiscal year, it represents a fraction of Microsoft’s $212 billion in sales.
- Regulatory Challenges and Concessions: Regulatory pushback had delayed the acquisition, with objections raised by the Federal Trade Commission in the U.S., the European Commission, and the U.K.’s Competition and Markets Authority (CMA). Microsoft addressed these concerns by making concessions, including offering free licenses for streaming Activision Blizzard games in the European Economic Area and securing agreements with console rivals and cloud-gaming providers. The FTC still expressed concerns about the deal’s impact on competition, while the U.K. officials found satisfaction with proposed changes, including granting game publisher Ubisoft cloud streaming rights for Activision’s games for 15 years.
Microsoft has successfully completed its $69 billion acquisition of video game publisher Activision Blizzard, marking the largest deal in Microsoft’s history. This acquisition, which faced regulatory challenges from U.S. and European authorities, grants Microsoft access to a substantial portfolio of popular video game franchises, including Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater, and Warcraft. The acquisition expands Microsoft’s presence in the gaming industry.
The deal encountered delays due to regulatory concerns, with objections from the Federal Trade Commission in the U.S., the European Commission, and the U.K.’s Competition and Markets Authority. Microsoft addressed these concerns by making concessions, including offering free licenses for streaming Activision Blizzard games in the European Economic Area and securing agreements with console rivals Nintendo and Sony to provide access to Call of Duty games for a decade. However, the FTC continues to express concerns about the deal’s impact on competition.
Microsoft’s CEO, Satya Nadella, is aiming to diversify the company beyond its core areas, such as operating systems and productivity software, and this acquisition aligns with that strategy. Activision Blizzard’s CEO, Bobby Kotick, will remain in his position until the end of the year. The completion of this acquisition signifies a significant move by Microsoft to expand its influence in the gaming industry.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/13/microsoft-closes-activision-blizzard-deal-after-regulatory-review.html
