UK Regulatory Authority Approves Microsoft’s Activision Acquisition, Paving the Way for Gaming Industry Transformation

The CMA has approved Microsoft's $68.7 billion acquisition of Activision, marking the end of a 20-month-long process of regulatory approvals and the official closure of the deal is expected soon.

Microsoft has successfully cleared the final hurdle in its acquisition of Activision.
The $68.7 billion acquisition represents the largest deal in the tech industry.
Microsoft provided undertakings to address the CMA's residual concerns.

Microsoft has successfully cleared the final hurdle in its acquisition of Activision, as the Competition and Markets Authority (CMA) has approved the deal. This marks the end of a 20-month-long process of regulatory approvals. While other regulatory bodies worldwide did not raise concerns, the CMA was determined to address Microsoft’s position in the cloud gaming sector, causing a significant delay. To resolve this, Microsoft had to restructure the deal and grant streaming rights to Ubisoft. This ensures that important games like Call of Duty, Overwatch, and World of Warcraft will not come under Microsoft’s control in relation to cloud gaming. Although the CMA had limited residual concerns with the new deal, Microsoft provided undertakings to address them. The US regulatory authority, the Federal Trade Commission (FTC), also posed its own challenges for Microsoft during the acquisition process. With all regulatory obstacles now cleared, Microsoft’s Vice Chairman and President, Brad Smith, expressed his satisfaction with this milestone. The $68.7 billion acquisition represents the largest deal in the tech industry. The official closure of the deal is expected to happen soon.

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Background Information

About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

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About Ubisoft:

Ubisoft is a important video game company that was founded in 1986 in France by the Guillemot brothers: Christian, Claude, Gérard, Michel, and Yves. The company is known for developing and publishing a wide range of popular video game franchises, including Assassin's Creed, Far Cry, Rainbow Six, and Watch Dogs. Ubisoft is recognized for its commitment to delivering immersive and engaging gaming experiences across multiple platforms, from consoles and PCs to mobile devices.