Activision Blizzard Acquisition Provisionally Approved By The CMA

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Further Decision After October 6th!

Microsoft’s acquisition of Activision Blizzard has been going on for over a year now, and it is one of the biggest hurdles the gaming giant has ever faced.

Following Microsoft’s victory over the FTC, the regulator moved forward and appealed the court’s decision. Further problems led to one last major delay, and the acquisition was extended to October.

Currently, the CMA remains the last hurdle for Microsoft, but it has just provisionally approved the merger.

Why it matters: Microsoft has spent a lot of time and effort in pursuit of Activision Blizzard. The acquisition is integral to Microsoft’s plans in the industry, including its ambitions for the mobile gaming sector.

Microsoft Activision Blizzard Acquisition

The CMA’s concerns over cloud gaming became the major reason for the denial of Microsoft’s merger.

However, Microsoft sold cloud streaming rights of Activision games to Ubisoft last month to address such concerns. Further remedies have also been offered to the CMA, and a press release says:

The CMA has provisionally concluded that this additional protection should resolve those residual concerns.”

A final decision will be announced by 6th October, but all signs point to the approval of Microsoft’s massive acquisition. If the regulator does not find another issue, the decision will likely be in favor of Microsoft, as most concerns have been addressed.

In response to CMA’s current decision, Microsoft president Brad Smith stated that this announcement has been encouraging for Microsoft and Activision. Bobby Kotick from Activision shared a similar message with his team through an email.

Microsoft’s commitment to the acquisition and working with regulators has led to positive developments for all parties involved. Following the announcement, Colin Raftery from the CMA commented that the regulator is now satisfied with the merger.

He explained that the cloud distribution deal with Ubisoft has inspired confidence, ensuring Microsoft does not become too dominant in the cloud gaming market like the regulator had previously feared.

While Microsoft’s current acquisition appears to be reaching its conclusion, the gaming giant has likely decided its next target already.

Recent leaks from the FTC court trials revealed Microsoft was interested in merging with companies like Nintendo, with Phil Spencer referring to such a scenario as a career moment.

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