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HomeHardwareTechUK Approves Microsoft's $69 Billion Activision Acquisition. Technostation

UK Approves Microsoft’s $69 Billion Activision Acquisition. Technostation

The UK competition watchdog authorized Microsoft’s $69 billion acquisition of Activision Blizzard, removing the last significant global regulatory barrier to the completion of the largest gaming merger in history.

The Competition and Markets Authority declared on Friday that any remaining worries it had about Microsoft’s reworked deal to sell some gaming rights to French producer Ubisoft Entertainment had been allayed. The organization promised to maintain competitive pricing and superior services.

The merger has been in limbo for months due to opposition from international antitrust regulators, including an initial UK veto. After Microsoft won the legal battle against the contract that the Federal Trade Commission had brought, it however received unexpected momentum. In May, the European Union approved the agreement with behavioral remedies. The only authority left to obstruct the merger was the CMA.

The CEO of the CMA, Sarah Cardell, said, “We gave a clear warning to Microsoft that the merger would be banned until they fully addressed our concerns and stuck to our guns on that.

The contract deadline has been extended by Microsoft and Activision until October 18.

Brad Smith, Microsoft’s Vice Chair and President, said, “We have finally passed the final regulatory hurdle to conclude this transaction, which we think will benefit players and the gaming industry worldwide.

Once the agreement is finalized, Microsoft will be in charge of some of the most illustrious gaming titles, including Call of Duty, Candy Crush Saga, and Diablo.
In an effort to bring great titles to its ecosystem of Xbox consoles, Windows PCs, and game subscription service Game Pass, Microsoft has been scooping up game businesses recently. Microsoft is currently the third-place console manufacturer behind Sony and Nintendo.

According to Microsoft executives, the agreement is the software giant’s strategy for entering the $93 billion mobile gaming market. Regulators in the UK, though, were obsessed with Microsoft’s ability to rule the budding cloud gaming business.

me Pass. Analysts have noted that cloud gaming has continued to be a niche market. Both Google and Amazon have had trouble entering it.

According to a statement released on Friday, the EU said that the modifications to the agreement wouldn’t need to go through a new approval procedure in Brussels. The UK commitments, according to the European Commission, do not conflict with Microsoft’s obligations in the EU.

Even after the acquisition closes, the FTC will continue to contest it, although it is unlikely that this will prevent it from being completed. The agency declared that it would continue with its internal trial challenging the acquisition.

The CMA acknowledged “limited residual concerns” with the amended agreement on Friday, but Microsoft provided commitments that will allow the CMA to enforce the terms of the rights sold to Ubisoft.

A representative for Activision commented, “The CMA’s official approval is fantastic news for our future with Microsoft, and we look forward to joining the Xbox Team.”

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