Microsoft Cleared to Buy Activision Blizzard

Microsoft has completed its $68.7 billion acquisition of video game publisher Activision Blizzard, nearly two years after announcing the massive transaction, after receiving the thumbs up from the UK’s competition watchdog.

Regulators in the US and UK had raised alarm about the combined gaming giant’s increasing market strength. However, the UK’s Competition Markets Authority (CMA), which had blocked the deal in April, agreed to the deal after Microsoft conceded that cloud gaming rights for Activision Blizzard’s games would be granted to French video game publisher Ubisoft for 15 years outside the European Economic Area.

Despite the concession, Microsoft will continue to manage titles such as Call of Duty, World of Warcraft, and Candy Crush, which is expected to generate substantial earnings for the company.

The CMA has argued that Microsoft’s existing advantage in cloud gaming is due to the proliferation of Windows and its “significant cloud infrastructure” business, a position that would allow it to expand on a market share of 60% to 70%.

Microsoft’s largest deal in history will elevate it to the world’s third-largest gaming company by revenue, trailing Tencent and Sony.

“We’re grateful for the CMA’s thorough review and decision today,” Microsoft president Brad Smith said. “We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.”