😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Microsoft's Activision Blizzard takeover progresses with UK regulator's approval

EditorPollock Mondal
Published 09/22/2023, 08:26 AM
MSFT
-
ATVI
-
UBIP
-
6758
-

Microsoft (NASDAQ:MSFT)'s $75 billion bid to acquire Activision Blizzard (NASDAQ:ATVI) has taken a significant step forward, following approval from the UK's Competition and Markets Authority (CMA) on Friday. The regulatory body had initially blocked the deal due to concerns over potential stifling of innovation and choice in the cloud gaming sector.

In response, Microsoft proposed a revised agreement that includes selling the non-European streaming rights of Activision games to Ubisoft, the publisher of Assassin's Creed. This move is aimed at addressing the CMA's concerns about Microsoft consolidating its dominant position in the cloud gaming market.

The CMA stated that this arrangement would prevent key Activision content, such as popular games like Call of Duty and World of Warcraft, from being monopolized by Microsoft. By allowing Ubisoft, an independent entity, to acquire the cloud streaming rights for Activision's games, the revised agreement is expected to maintain healthy competition in the maturing cloud gaming market.

In addition to this restructuring, Microsoft has made several other agreements as part of its strategy to finalize the merger. This includes a decade-long contract with Sony (NYSE:SONY) to ensure the continued availability of Activision’s Call of Duty games on PlayStation consoles. To secure approval from the European Commission, Microsoft also agreed to license Activision’s games to rival cloud gaming services.

Despite these advancements, the deal has not yet been fully finalized. Microsoft has proposed solutions to address remaining issues raised by the CMA, which will be deliberated upon until October 6th. However, it is increasingly likely that the merger will be finalized before the companies' self-imposed deadline of October 18th.

Ahead of market opening on Friday, shares in Microsoft increased by 0.5%, while Activision’s stock indicated a rise of 1.8%. Ubisoft shares also experienced a surge of 3.6% during initial European trading.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.