With the completion of its acquisition of Activision Blizzard, the company behind “Call of Duty” and other popular video games, Microsoft has closed one of the biggest IT deals in history.
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Activision (ATVI), according to a filing the business made with the US Securities and Exchange Commission on Friday, is now a wholly-owned subsidiary.
The planned acquisition was given the green light earlier on Friday by UK antitrust officials, clearing the last legal barrier to the transaction’s completion.
The firms agreed to give up a few cloud gaming rights, according to the Competition and Markets Authority, and the merger was approved. The decision is “a game-changer” that will enable “competitive prices and better services,” according to a statement from the CMA.
Early in 2022, Microsoft (MSFT) announced the merger, but the UK competition watchdog halted it in April.
The historic transaction, which was once valued at $69 billion, was being thwarted by the CMA, the sole regulator in the world.
The UK regulator expressed worries about the level of competition in the market for cloud gaming, stating that Microsoft might try to keep Activision’s games exclusive to its own platforms before raising the cost of user subscriptions and giving players less options.
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Microsoft and Activision revised the agreement in August to allay those worries.
They offered a reorganised merger that would enable a rival, Ubisoft Entertainment, to purchase Activision’s cloud streaming rights outside of the European Union and three additional European nations.
That placated the CMA, which had hinted earlier this month that it would probably approve the revised takeover.
The new agreement, according to the government, “will prevent Microsoft from locking up competition in cloud gaming.”
Additionally, it will ensure that Activision content can be used by cloud gaming providers using non-Windows operating systems, cutting costs and improving efficiency.
The largest video game studio in the world is Activision Blizzard. In addition to “Call of Duty,” it also creates “World of Warcraft” and “Overwatch.”
Xbox Game Pass is a well-liked video game subscription service offered by Microsoft, the company that sells the Xbox gaming console, along with a cloud-based video game streaming service.
Microsoft expects the acquisition will help it improve its position in the gaming sector and more effectively compete with market giants Tencent and Sony.
Microsoft President Brad Smith stated in a statement on X, the website that replaced Twitter, “We’re grateful for the CMA’s thorough review and decision.”
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Microsoft has officially completed the massive $69 billion acquisition of video game developer Activision Blizzard. An important step in the tech giant’s entry into the gaming business was reached when antitrust officials in the UK authorized the proposed acquisition, allowing this blockbuster takeover to pass its final legal obstacle.
Activision Blizzard, the company behind well-known game titles like “Call of Duty” and “World of Warcraft,” can now be controlled by Microsoft. Microsoft’s influence in the gaming business is further cemented by one of the most expensive tech purchases in history.
Source: Cosmo Politian