The UK CMA approves Microsoft's ~$69B Activision acquisition, after Microsoft restructured the deal to sell some of Activision's cloud gaming rights to Ubisoft

The final roadblock has been removed. — What you need to know — UK regulatory authority the CMA granted Microsoft approval to purchase Activision Blizzard.

Windows Central 2023-10-13 Samuel Tolbert

Context & Ripple Effects

The CMA had already narrowed part of its review after new evidence eased concerns around console supply, but cloud gaming remained the decisive issue. Microsoft's later commitment to transfer certain Activision cloud-gaming rights to Ubisoft was designed to address that remaining barrier.

The regulator then indicated that the revised structure appeared to answer its concerns. Approval turns that remedy from a proposed concession into the condition under which the transaction can proceed.

First-order effects

Microsoft can complete its acquisition of Activision Blizzard with UK approval in place, ending the transaction's final reported regulatory obstacle.
Ubisoft receives the agreed role in the restructured arrangement for some Activision cloud-gaming rights, while Microsoft accepts a narrower set of rights than under its original proposal.

Second-order effects

The outcome gives cloud-gaming distribution a more independent participant in Ubisoft, rather than leaving all affected rights within the combined Microsoft-Activision business.
Large game-content acquisitions now have a clearer incentive to offer targeted rights remedies when regulators identify a specific emerging-market concern, as Microsoft's revised offer was provisionally accepted by the CMA.

Third-order effects

If regulators continue to treat cloud distribution as a distinct competition issue, deal structure—not merely divestitures of entire businesses—will increasingly determine whether major entertainment and technology mergers clear.
The case points to governance becoming a market-access variable: platform owners may need to preserve rival routes to content in order to consolidate content libraries.

The trend: Major platform acquisitions are increasingly being reshaped around access to cloud-distributed content, with regulators using rights remedies to protect nascent competition.

Discussion

Gameranx Ryan Parreno on x
Microsoft And Activision Bosses React To CMA Approval For Their Deal
Pure Xbox Fraser Gilbert on x
CMA Criticises ‘Tactics Employed By Microsoft’ Despite Agreeing To ActiBlizz Deal
@knoebel.bsky.social Knoebel on bluesky
The Cloud Deal with Ubisoft changed a lot and the CMA decided the new end date for the new Phase 1 investigation is October 18th. — https://www.gov.uk/... [image]
@bradsmi Brad Smith on x
We're grateful for the CMA's thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.
@tomwarren Tom Warren on x
“Oh, What a Beautiful Mornin” plays during Microsoft's Activision Blizzard acquisition completion video https://www.youtube.com/...
@cmagovuk @cmagovuk on x
We've cleared the new deal for Microsoft to buy Activision without cloud gaming rights. In August, Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision's cloud gaming rights. Read more: https://www.gov.uk/... 1/2 [image]
@idlesloth84_ @idlesloth84_ on x
Bobby Kotick shared an update on the CMA's final decision on our deal with Microsoft Activision Blizzard Source: https://newsroom.activisionblizzard.com / ... [image]
@fosspatents Florian Mueller on x
Bobby Kotick's internal memo following CMA approval. I still expect closing to become known at 9 AM Eastern Time / 2 PM UK Time / 3 PM Central European Time. This does indicate that the European Commission does not object, and Microsoft's president also said UK was final hurdle.
@divestech Dan Ives on x
With Microsoft/Activision set to close a big win for Redmond and another black eye for FTC/Khan. Big Tech no longer fearing-we believe more M&A will accelerate into 2024 with AI a major focus looking ahead as everyone chasing Redmond, Google, and the Godfather of AI Jensen. 🔥🐂
@deeketweak Derek Strickland on x
Just saw the news. Xbox is about to get a whole lot bigger. https://www.tweaktown.com/...
@caffar3cristina Cristina Caffarra on x
Quite a journey (2 years as lead economist on the case in Europe). Much to discuss, but two big picture takeaways. 1. This is the case that launched #ecosystem theories in mergers (my baby) for good. 2. It has also changed geopolitical alignment in enforcement for quite a while.
@colteastwood @colteastwood on x
To all the people that hoped Xbox wouldn't be able to compete and wanted them to close up shop. Sorry. CMA approved the deal and Xbox now owns Activision Blizzard.
@postup_sog @postup_sog on x
A statement from Activision Blizzard on the clearance: “The CMA's official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox Team.”
@tomwarren Tom Warren on x
Microsoft was never going to just close over the CMA and disregard a regulator's decision. I've maintained that since May, when certain analysts were suggesting this could happen and others were cheering this idea on. It's just not how you do business 🤷 [image]
@cmagovuk @cmagovuk on x
This new deal will stop Microsoft from locking up competition in cloud gaming, preserving competitive prices and services for UK cloud gamers. Read more: https://www.gov.uk/... 2/2
@benjisales Benji-Sales on x
It's official The CMA has approved Microsoft's acquisition of Activision Blizzard, the last roadblock “We now have all regulatory approvals necessary to close and we look forward to bringing joy and connection to even more players around the world” https://www.theverge.com/... [i…
@atvi_ab @atvi_ab on x
Our CEO Bobby Kotick shared an update on the CMA's final decision on our deal with @Microsoft. Read the full update here: https://newsroom.activisionblizzard.com / ...
r/XboxSeriesX r on reddit
We're excited to welcome Activision Blizzard King to Xbox!
r/pcgaming r on reddit
Activision Blizzard King Joins Xbox - Official Trailer
r/XboxSeriesX r on reddit
Activision Blizzard King Joins Xbox - Official Trailer
r/gamernews r on reddit
The final step in the UK for the Microsoft deal
r/entertainment r on reddit
Call of Duty maker to be bought by Microsoft
r/PS5 r on reddit
Microsoft concession a gamechanger that will promote competition

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