UK regulators give consent for Microsoft to acquire Activision Blizzard

UPDATE: Xbox CEO Phil Spencer has announced that Activision Blizzard King is officially a part of Microsoft. This means that a cornucopia of big franchises, from “Pitfall to Call of Duty, World of Warcraft to Overwatch, Candy Crush Saga to Farm Heroes Saga” now fall under the Xbox banner.

It appears that Microsoft may finally have its toes over the finish line when it comes to acquiring Activision Blizzard. The process began in 2022, and Microsoft has had to navigate several obstacles since then to finalize the deal. After plenty of negotiating, the UK’s Competition and Markets Authority has given its consent for the acquisition to close.

It was rumored that this was the case earlier in the week, but we now have an official statement. The step forward comes after Microsoft agreed to not acquire Activision Blizzard’s cloud streaming rights, instead handing it over to Ubisoft. When commenting on Microsoft’s concession, Martin Coleman, Chair of the Independent Panel, stated that the new deal is “better for competition, better for consumers and better for economic growth.”

What does Microsoft’s acquisition of Activision Blizzard entail?

In a series of documents released by the CMA on October 13, it is explained that when the acquisition goes through, Activision Blizzard “will survive as a wholly owned subsidiary solely controlled by Microsoft and will cease to be distinct.” Following renegotiations to appease the CMA, Activision’s cloud streaming rights will be transferred to Cloud Newco, which will be acquired by Ubisoft.

This doesn’t mean Microsoft is entirely out of the woods yet. One of the biggest concerns is that the acquisition will result in less competition within the gaming industry, specifically regarding cloud gaming. Consequently, the CMA has been given the right to appoint a trustee and the ability to ensure compliance with the undertakings set out to reduce Microsoft’s monopolization.

With the finalization of the acquisition, we know that Activision Blizzard expects far more of its titles to wind up on Game Pass. We could also be looking at many of the company’s games becoming Xbox console exclusives, though big franchises like Call of Duty may be safe for now.