British regulators granted final approval Friday for Microsoft’s $69 billion takeover of Call of Duty video game maker Activision praising the U.S. software giant’s revised deal as a “gamechanger that would promote competition.” File Photo by Jim Ruymen/UPI
British antitrust regulators granted final approval Friday for Microsoft’s $69 billion takeover of Call of Duty video game maker Activision praising the U.S. software giant’s revised deal as a “gamechanger that would promote competition.”
Microsoft’s restructured deal to buy Activision — minus cloud gaming rights — was cleared because it would deliver competitive pricing and better services, after its initial bid was blocked due to Microsoft’s dominance in cloud computing, the Competition and Markets Authority said. Advertisement
The approval comes five days before an already once extended Oct. 18 deadline to complete the merger when Microsoft’s agreement with Activision was due to expire.
The regulator agreed to reconsider the deal after Microsoft in August proposed selling streaming rights for all of Activision’s PC and console content produced over the next 15 years to rival French game developer, Ubisoft, which is working on new ways for consumers to access the games.
“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for U.K. cloud gaming customers,” the CMA said.
“It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services. It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.” Advertisement
CMA CEO Sarah Cardell said transferring Activision’s cloud streaming rights to Ubisoft prevented Microsoft from gaining a “stranglehold over an important and rapidly developing market.”
“As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome,” said Cardell.
Microsoft President Brad Smith expressed gratitude for the CMA’s decision, writing on social media that the marriage would “benefit players and the gaming industry worldwide.”
Activision welcomed the approval and said it was ready to put the deal to bed.
“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,” Bobby Kotick said in a note to the company’s 9,800 employees.
Microsoft put forward the proposed changes to the deal a month after the CMA postponed a July 14 decision on whether to reverse an interim ban on the acquisition. That in turn forced Microsoft and Activision to push back the deadline to complete by three months.
