Microsoft completed its $69 billion acquisition of Activision Blizzard. Previously, the company had been fighting global regulators for nearly two years to complete the deal, which was once on the verge of collapse. Through the largest-ever acquisition in the video game industry, the Xbox game console maker has strengthened its competitiveness and jumped from fifth to third in the world, behind Tencent Holdings and Sony Group.
Microsoft executives had previously underestimated the intensity and duration of antitrust objections, forcing the software giant to extend the deal deadline by three months. What followed was a remarkable turn of events, and the deal was finally completed.
The completion comes as Microsoft amends the merger agreement to win approval from UK authorities. The U.S. Federal Trade Commission (FTC) is continuing to seek legal action and proceed with its administrative hearing after its request to block the deal was rejected by a court. If the committee is successful, it could still force the companies to cancel the deal.
The UK Competition and Markets Authority (CMA) announced on Friday that it had approved the deal and accepted Microsoft's revised acquisition plan. The revised proposal involves the sale of some game rights to French publisher Ubisoft Entertainment.
Phil Spencer, head of Microsoft's gaming business, may even face greater challenges in the future. The deal sets the stage for Spencer to boost the company's lagging mobile gaming business. Activision Blizzard's games include the popular Candy Crush Saga and its spin-offs. However, given that this oversaturated industry is shrinking, this delay means Microsoft is even further behind in this area.
Microsoft said in the announcement that it plans to offer a library of games on its cloud streaming service GamePass.
An email Spencer sent to employees said Bobby Kotick will remain CEO of Activision Blizzard until the end of this year, reporting to him.