Microsoft / Activision Blizzard deal gets preliminary approval in the UK

In January 2022, Microsoft announced its intention to acquire Activision Blizzard for a whopping $68.7 billion. Since then, Microsoft has had to overcome several hurdles to get the deal approved in various regions. The UK has been one of the biggest obstacles, though it appears some important progress has been made.

A press release from the Competition and Markets Authority reveals that it is pleased with the adjustments Microsoft has made to the deal following prior objections. As previously reported, Microsoft will no longer purchase Activision Blizzard’s cloud gaming rights. Instead, they will be sold to Ubisoft. This is being done to stave off any sense of Microsoft’s monopolization of cloud gaming.

Following the restructured deal, the CMA still had some remaining concerns about how “certain provisions in the sale of Activision’s cloud streaming rights to Ubisoft could be circumvented, terminated, or not enforced.” However, after Microsoft offered additional remedies, the CMA concluded that the “additional protection should resolve those residual concerns.”

What happens if the Microsoft acquisition of Activision Blizzard goes through?

Commenting on the new deal, Sarah Cardell, CEO of the CMA, stated that “Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns.” It is true that the deal has significantly changed, as Microsoft will no longer have ownership of Activision Blizzard’s cloud gaming.

Microsoft president Brad Smith also issued a public comment on the deal, saying they are “encouraged by this positive development” in the review process.

Nevertheless, should the deal go through, it will significantly expand Microsoft’s footprint in the gaming world. It’ll introduce several major IPs to the company’s gaming stable, including Crash Bandicoot, World of Warcraft, and Overwatch. Microsoft will also gain ownership of Call of Duty, though it has committed to keeping the first-person shooter multiplatform.

It should be stressed that this doesn’t mean that the deal has been finalized in the UK. If the deal is approved, Microsoft will be one step closer to sealing the largest gaming acquisition in history. The deadline for the closure is currently set for October 18.