Microsoft’s purchase of video game maker Activision Blizzard won final approval on Friday from Britain’s competition watchdog, reversing its earlier decision to block the $69 billion deal and removing a last obstacle for one of the largest tech transactions in history.
The Competition and Markets Authority’s blessing was expected after it gave preliminary approval last month to a revamped Microsoft proposal meant to address concerns that the deal would harm competition and hurt gamers.
Penalty avoided
It signals certain victory in the Xbox maker’s quest to acquire Activision, maker of the popular Call of Duty game franchise.
The companies had agreed to extend an original mid-July deadline to October 18 to overcome the British regulator’s objections. The approval also helps Microsoft avoid paying Activision a $4.5 billion penalty if the deal doesn’t close.
“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” the watchdog said.
Microsoft President Brad Smith said the company was grateful for the “thorough review and decision.” “We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” he said.
Activision CEO Bobby Kotick also welcomed the news. “We look forward to becoming part of the Xbox Team.”
Since the deal was announced in January 2022, Microsoft has secured approvals from antitrust authorities covering more than 40 countries. Crucially, it got a thumbs-up from the 27-nation European Union after agreeing to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.
But the deal faced resistance from British and American regulators who worried it would stifle competition in the video game industry. Top rival Sony also feared it would limit PlayStation gamers’ access to Call of Duty, Activision’s long-running military shooter series.
