The UK CMA approves Microsoft's $68.7B Activision Blizzard acquisition, after Microsoft reformed the deal to sell some Activision cloud gaming rights to Ubisoft
Who would have thought that a regulatory body that refused to let Meta buy Giphy would allow Microsoft to buy Activision? … Bluesky: Knoebel / @knoebel.bsky.social : 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] X: Brad Smith / @bradsmi : 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. @cmagovuk : 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] Tom Warren / @tomwarren : “Oh, What a Beautiful Mornin” plays during Microsoft's Activision Blizzard acquisition completion video https://www.youtube.com/... Dan Ives / @divestech : 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. 🔥🐂 Cristina Caffarra / @caffar3cristina : 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 : 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 : 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.” Derek Strickland / @deeketweak : Just saw the news. Xbox is about to get a whole lot bigger. https://www.tweaktown.com/... Benji-Sales / @benjisales : 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/... [image] @atvi_ab : 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 / ... @idlesloth84_ : Bobby Kotick shared an update on the CMA's final decision on our deal with Microsoft Activision Blizzard Source: https://newsroom.activisionblizzard.com / ... [image] Tom Warren / @tomwarren : 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] Florian Mueller / @fosspatents : 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. @cmagovuk : 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 LinkedIn: David Parker : I had thought that the CMA was violently allergic to behavioural remedies. Apparently they can be pro-competitive. … Jordi Macias : Full circle. — I was a Localization Project Manager (on the vendor side) for the OG Age of Empires back in the 90's. That was actually my first games localization project. … Rafael Brown : The Activision Blizzard merger with Microsoft Xbox goes forward, and the tradeoff is that Ubisoft is saddled with the albatross of game streaming rights over Cloud. … Steve Huot : As Ronan well states, the right decision, albeit one held up by the wrong logic, still got done. Thankfully! As the excuse to hold it for “cloud gaming” always was a ruse at best. … Ronan Scanlan : There we have it, Microsoft will finally, and belatedly, be permitted to acquire Activision. — Microsoft offered a different remedies package and the CMA has accepted it. … Forums: r/XboxGamePass : So when will Call of Duty or other Activision Blizzard King games come to gamepass? 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Microsoft is now free to finalize its giant $68.7 billion acquisition. r/Competitiveoverwatch : Microsoft's Activision Blizzard deal has been approved by UK regulators
Context & Ripple Effects
The CMA’s earlier block centered on the still-developing cloud-gaming market, making the later transfer of certain Activision cloud rights to Ubisoft the pivotal change rather than a routine closing condition. The revised proposal was subsequently judged to address the regulator’s concerns in the CMA’s preliminary assessment.
The approval completes a regulatory arc in which Microsoft made different access commitments across jurisdictions: EU clearance had followed concessions intended to preserve rivals’ access to Call of Duty and other games. The UK outcome matters because it turns a proposed merger remedy into a condition for the deal’s final completion.
First-order effects
- Microsoft can complete its acquisition of Activision Blizzard after clearing the final UK hurdle reported here.
- Ubisoft receives the specified Activision cloud-gaming rights, separating that portion of distribution control from Microsoft’s ownership of Activision’s games.
Second-order effects
- Microsoft’s cloud-gaming strategy must operate alongside Ubisoft’s rights position in the covered territory, rather than treating Activision content as wholly internal to Microsoft’s cloud offering.
- Large game acquisitions face a clearer incentive to offer enforceable access or rights remedies when cloud distribution—not only console ownership—is the regulator’s concern.
Third-order effects
- If this remedy model is repeated, cloud-gaming competition may increasingly be shaped by negotiated licensing and rights partitions imposed during merger review.
- The case suggests that access to digital distribution can become a standalone competition issue before a market is fully mature, expanding governance’s role in determining deal structure.
The trend: Platform acquisitions are increasingly being approved or reshaped through remedies that preserve third-party control over key digital distribution rights.