Microsoft Acquires Activision Blizzard for $69 Billion: Biggest Deal in the History of Gaming

Microsoft Acquires Activision Blizzard for $69 Billion, making it the Biggest Deal in the History of Gaming. The takeover comes after the UK’s Competition and Markets Authority approved the global deal, following initial concerns that led to the original bid being blocked.

The acquisition gives Microsoft control over major gaming franchises, including Call of Duty, World of Warcraft, and Candy Crush. Phil Spencer, head of Microsoft Gaming, expressed enthusiasm for securing Activision, ensuring that all gamers, regardless of their platform, are welcome.

As part of the deal, Microsoft has transferred the rights to distribute Activision’s games on consoles and PCs over the cloud to Ubisoft, a French video game publisher. This concession addresses competition concerns while allowing Microsoft to access substantial revenue streams.

While the CMA ultimately approved the deal, it criticized Microsoft’s conduct throughout the lengthy approval process, stating that the company’s tactics were uncooperative. The CMA stressed that its decision was made independently and without political influence.

Activision Blizzard CEO Bobby Kotick confirmed his plan to step down at the end of 2023 in a letter to staff. He emphasized his commitment to a smooth transition during the acquisition.

The acquisition enhances Microsoft’s position in the gaming industry, expanding its library of titles for the Xbox Game Pass service and its presence in the mobile gaming sector. This deal could also propel Microsoft to become the third-largest player in the gaming industry, trailing behind Sony and Tencent.

Despite objections from rivals like Sony, the acquisition aims to drive competition, encourage innovation, and offer more choices to gamers, with the CMA’s decision seen as a positive development for the UK’s gaming industry.