Friday marked a significant step forward for Microsoft (NASDAQ:MSFT)'s acquisition of Activision Blizzard (NASDAQ:ATVI), as the UK's Competition and Markets Authority (CMA) gave its approval for the $68.7 billion deal. This decision brings an end to a three-year waiting period and sets the stage for the finalization of the acquisition by October 18.
In an effort to foster competition in the burgeoning cloud gaming market, a key condition of the CMA's approval was that Microsoft sell Ubisoft 15 years' worth of game streaming rights for Activision Blizzard games. This development has already been arranged, and as a result, Ubisoft now holds the cloud gaming rights for Activision Blizzard games.
The acquisition includes major studios such as Infinity Ward, Raven (NASDAQ:RAVN) Software, Beenox, Treyarch, and Sledgehammer Games. CMA CEO Sarah Cardell emphasized that this deal will lead to competitive prices and improved services for consumers.
Despite previous attempts by the US Federal Trade Commission (FTC) to block the deal in court, it now seems unlikely that they could reverse the acquisition after its finalization. Expressing optimism about their future with Microsoft, Activision Blizzard CEO Bobby Kotick shared his enthusiasm in a letter to employees.
Microsoft's Vice Chair and President Brad Smith expressed gratitude for the CMA's approval and eagerness to finalize the acquisition. Meanwhile, Microsoft is concurrently dealing with a $29 billion unpaid tax issue with the IRS.
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