The UK’s CMA Approves Microsoft’s Activision Blizzard Acquisition

The UK’s Competition and Markets Authority (CMA) has finally approved Microsoft’s proposed acquisition of Activision Blizzard. The last roadblock that was preventing Microsoft from closing the $68 billion deal has now been cleared, and today’s decision also marks the end of a long regulatory process that began last year.

The CMA originally blocked Microsoft’s Activision Blizzard acquisition in April over concerns about the cloud gaming market. While Microsoft appealed that decision, the CMA agreed to pause legal proceedings in July, which allowed Microsoft to submit a restructured deal in August that will transfer cloud gaming rights for Activision Blizzard games to Ubisoft.

If the UK regulator had already provisionally approved this restructured deal on September 22, it delivered today the final regulatory approval that Microsoft needed to close the acquisition. The $68 billion deal is Microsoft’s biggest acquisition ever, and an acquisition of this scale is also unprecedented in the history of the video games industry.

“With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome,” said Sarah Cardell, Chief Executive of the CMA today.

While an official announcement from Microsoft is likely coming very soon, Microsoft President Brad Smith has already commented on the CMA’s decision. “We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” the exec posted on X.

With this acquisition, Microsoft will take control of various blockbuster franchises such as Call of Duty, Diablo, and Overwatch. However, Phil Spencer, CEO of Microsoft Gaming previously said the main purpose of this acquisition was to help Microsoft gain a foothold in the mobile games market. Activision Blizzard owns several popular mobile games such as Call of Duty Mobile and Candy Crush, and these popular IPs will be key assets for the mobile game stores that Microsoft plans to launch on iOS and Android next year.