2023-10-13 08:12:33
LONDON (AP) — Microsoft’s purchase of video game maker Activision Blizzard received final approval Friday from Britain’s competition regulator, which reversed its earlier decision to block the deal valued at $69 billion. The decision removes the last barrier to one of the largest technology transactions in history.
The go-ahead from the Competition and Markets Authority (CMA) had been expected since it gave preliminary approval last month to Microsoft’s revamped proposal that addressed concerns regarding potential harm to competition. and the players.
This is also a sure victory for the Xbox game console maker in its attempt to acquire Activision, responsible for the popular Call of Duty franchise, among other games.
The companies had agreed to extend the original deadline from mid-July to October 18 to overcome the CMA’s objections. The approval will mean that Microsoft will not have to pay Activision the $4.5 billion penalty expected if the deal is not closed.
“The new agreement will prevent Microsoft from blocking competition in cloud gaming as this market takes off, preserving competitive prices and services for British cloud gaming customers,” the regulator said.
Microsoft President Brad Smith said the company was grateful for the “thorough review and decision.”
“We have now cleared the final regulatory hurdle to close this purchase that we believe will benefit gamers and the video game industry around the world,” he added.
Activision CEO Bobby Kotick celebrated the news, saying, “We can’t wait to be part of the Xbox team.”
Since announcing the deal in January 2022, Microsoft has gained approval from antitrust authorities spanning more than 40 countries, including the European Union, following agreeing to allow users and cloud gaming platforms to use its products without pay royalties for 10 years.
But it ran into obstacles in the United States and Britain, where regulators feared that the Activision purchase might harm competition and gamers, especially those who use Sony’s PlayStation game console instead of Microsoft’s Xbox.
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