Microsoft has received approval from UK regulators for their revised offer to buy Activision Blizzard, the developer behind Call of Duty, Overwatch and Candy Crush. The Competition and Markets Authority initially blocked the original $69 billion deal in April, but stated that Microsoft’s updated bid addressed concerns. Microsoft will hand over the rights to distribute Activision’s games on consoles and PCs over the cloud to French video game publisher, Ubisoft.
Despite approving the deal, the CMA criticised Microsoft for their tactics during the buyout process. The CMA confirmed that the revised deal would “preserve competitive prices” in the gaming industry and provide more choice and better services. The regulators approved the deal, which makes Microsoft the owner of Call of Duty, World of Warcraft, Overwatch and Candy Crush. Prior to approval, the deal could not be finalised globally, and it has received a mixed response from regulators globally.
The CMA’s Sarah Cardell concluded that the Activision cloud streaming rights would be sold to Ubisoft, which ensures that Microsoft cannot monopolise the rapidly developing market. Microsoft remains optimistic that its takeover will boost demand for Xbox consoles and allow the company to add more games to its Xbox Game Pass streaming service, in which customers pay a subscription to access a catalogue of games via cloud streaming. The deal marks a significant shift for the games industry and installs Microsoft as a video game giant, much to the concern of its primary rival, Sony.
After the acquisition was rejected during the initial investigation, Microsoft and Activision hit out at the watchdog. However, Ms Cardell defended the CMA’s actions, stating that the watchdog “stood our ground” and was prepared to defend the decision in court. “When we take these decisions, whether it’s this decision on Microsoft or any other decision, we are looking to protect competition in the UK,” she said. “That benefits consumers and that benefits businesses and it benefits the economy because competition is key to drive investment and innovation and growth.”
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