Microsoft has received approval from UK regulators for its $68.7 billion acquisition of Activision Blizzard. The UK’s Competition and Markets Authority (CMA) cleared the deal after Microsoft restructured it to transfer cloud gaming rights for Activision Blizzard games to Ubisoft. The CMA sees this concession as a “gamechanger” that will promote competition in the growing cloud gaming market. Microsoft welcomes the CMA’s decision and is now awaiting news about the finalization of the acquisition.
The CMA’s approval comes after it initially moved to block the deal in April over concerns about cloud gaming. Microsoft appealed that decision and both parties put the process on hold to allow for the restructuring of the deal. The Xbox maker originally announced the acquisition in January 2022 and has faced scrutiny from regulators ever since. The Federal Trade Commission is still appealing its failure to secure a preliminary injunction to block the deal.
With the FTC not having a preliminary injunction in place, Microsoft is now clear to close the acquisition. The closure will mark the end of a 20-month process of regulatory approvals and battles. The company’s obligations to the European Commission will allow consumers in EU countries to stream Activision Blizzard games via any cloud gaming service of their choice. Microsoft has made several cloud gaming deals, and the restructured deal ensures that it won’t control the cloud gaming rights to Activision Blizzard outside of EU markets. Ubisoft will acquire these rights for 15 years, allowing the publisher to license titles back to Microsoft for inclusion in Xbox Cloud Gaming.
