Microsoft Finalizes Landmark $69 Billion Activision Blizzard Acquisition

Microsoft has officially closed its acquisition of Activision Blizzard. The deal is valued at nearly $69 billion. It concludes a lengthy 20-month regulatory process. The closure was confirmed on October 13, 2023.

This merger is the largest in video game history. It significantly alters the industry’s competitive landscape. Microsoft now controls major franchises like Call of Duty and World of Warcraft.

Regulatory Hurdles and Global Approval Process

The acquisition faced intense scrutiny from regulators worldwide. The UK’s Competition and Markets Authority was the final major holdout. It initially blocked the deal over cloud gaming concerns.

Microsoft restructured the deal to address these issues. It transferred cloud gaming rights for Activision titles to Ubisoft. This compromise satisfied the UK regulator. The European Commission and other global bodies had already granted approval.

Impact on Gamers and the Future of Xbox

This move solidifies Microsoft’s Xbox Game Pass subscription service. The company plans to add Activision Blizzard games to the platform. This offers subscribers a vast new library of titles. According to Reuters, the goal is to make Game Pass the “Netflix for games.”

The deal also strengthens Microsoft’s position in the mobile gaming market. Activision Blizzard owns King, the creator of the highly profitable Candy Crush Saga. This gives Microsoft a significant foothold in a sector where it was previously less dominant.

The completion of this monumental Microsoft Activision Blizzard acquisition marks a new era for gaming. It positions Microsoft as a content powerhouse, directly challenging rivals like Sony and Nintendo. The full impact on game development and consumer choice will unfold in the coming years.

Info at your fingertips

How much did Microsoft pay for Activision Blizzard?

Microsoft paid $68.7 billion to acquire Activision Blizzard. This makes it the most expensive acquisition in the history of the tech and gaming industries.

What games does Microsoft now own?

Microsoft gains control of iconic franchises including Call of Duty, World of Warcraft, and Diablo. It also owns Candy Crush Saga through Activision’s subsidiary, King.

Will Call of Duty become exclusive to Xbox?

Microsoft has committed to keeping Call of Duty on PlayStation platforms. The company has signed licensing agreements with Sony to ensure multi-platform availability for at least ten years.

What was the biggest obstacle to the deal?

The UK’s Competition and Markets Authority posed the most significant challenge. The regulator was concerned about reduced competition in the emerging cloud gaming market before approving the restructured deal.

How does this affect Xbox Game Pass?

Microsoft intends to bring Activision Blizzard games into the Xbox Game Pass library. This will dramatically increase the value and appeal of the subscription service for millions of users.

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Trusted Sources: The Associated Press, Reuters, Bloomberg