Microsoft's purchase of Activision Blizzard, a video game publisher, has been finalized, according to a regulatory filing on Friday, October 13.
It came about after the corporation successfully resolved competition worries among the United Kingdom and European authorities and received a favorable verdict from a United States district court.
The Deal Is Finalized!
Early on Friday, the acquisition was given the go-light by the UK's Competition and Markets Authority (CMA), paving the way for the transaction to be finalized.
As a result of the acquisition, Microsoft now has access to a large library of popular video game properties, such as Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater, and Warcraft.
Microsoft Gaming CEO Phil Spencer stated in a blog post, "Today we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms. We'll share more about when you can expect to play in the coming months."
Bobby Kotick, CEO of Activision Blizzard, will remain in his position until the end of the year.
Since becoming CEO in 2014, Satya Nadella of Microsoft has been working to expand the company's offerings beyond its traditional fare of operating systems and productivity programs. Activision has worked with Microsoft as both a partner and an opponent. It is one of the few major publishers of AAA titles, which may cost above $100 million to make.
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Regulatory Concerns Delayed the Buyout
Microsoft anticipated the agreement would be finalized by the end of June 2023, when it first announced it in January 2022. In July, the two businesses reached an agreement to push out the due date until October 18.
Concerns were voiced about the deal by the US Federal Trade Commission (FTC), the European Commission (EC), and the UK's CMA.
Microsoft appeased European authorities by making concessions to their demands. By reaching this agreement, Activision Blizzard has committed to providing free licenses to customers in the European Economic Area and free licenses to streaming providers to allow European gamers to access Activision titles through the cloud.
Previously, Microsoft has made a 10-year commitment to provide Nintendo and Sony consoles with access to Call of Duty games by signing licensing deals with both companies. Additionally, Microsoft has agreements in place with Boosteroid, Nvidia, Nware, and Ubitus, all of which offer cloud gaming services.
In July, the FTC requested a preliminary injunction from the San Francisco federal district court to prevent Microsoft and Activision from concluding their merger. The agency appealed to the 9th Circuit, which dismissed a move to temporarily block the contract.
It was more difficult to win over British authorities. Microsoft said in August that, if the transaction went through, Ubisoft would have exclusive 15-year cloud streaming rights to all of Activision's titles. The CMA said on September 22 that this adjustment to the plan should allay any remaining concerns about the transaction.
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