In a major gaming industry deal, Microsoft has successfully closed its $69 billion acquisition of Activision Blizzard. The deal, which was originally announced in January 2022, will bolster Microsoft’s presence in the video gaming market and allow it to better compete with industry leader Sony. As part of the approval process, Microsoft agreed to sell streaming rights for Activision’s games to alleviate competition concerns. This acquisition is seen as a significant win for Microsoft as it aims to attract more customers to its Xbox consoles and Game Pass subscription service.
One of the key benefits of the deal for Microsoft is gaining access to Activision’s popular mobile titles, including “Candy Crush Saga” and “Call of Duty Mobile.” This acquisition will allow Microsoft to expand its presence in the lucrative market for mobile games, estimated to be worth over $90 billion. Analysts believe that this purchase will give Microsoft the necessary content to offer a wider range of games through its subscription service, further enhancing its appeal to gamers.
While the deal has received approval in the UK, it still faces opposition from the US Federal Trade Commission (FTC), which previously attempted to block the acquisition. Despite the FTC’s appeal, analysts predict that any potential challenges will result in limited concessions in the future. The main regulatory hurdle for the deal came from the UK Competition and Markets Authority (CMA), which initially blocked the acquisition in April. However, Microsoft’s agreement to sell streaming rights was seen as a “game changer” by the CMA, ensuring competition in the cloud gaming market. This outcome signifies a victory for the CMA, which faced criticism from the merging parties and accusations of hindering business opportunities in the UK.
