CMA approves Microsoft’s acquisition of Activision Blizzard

After Microsoft’s recent announcement of transferring its cloud streaming game distribution rights for the UK region to Ubisoft, the UK’s Competition and Markets Authority (CMA) has formally approved Microsoft’s acquisition of Activision Blizzard at a price of $68.7 billion.

According to the CMA, Microsoft’s transfer of cloud streaming game distribution rights to Ubisoft is expected to foster positive growth in the gaming industry while eliminating concerns of market monopolization.

The CMA’s formal endorsement of this transaction virtually confirms Microsoft’s seamless acquisition of Activision Blizzard. Upon finalizing this acquisition, Microsoft is poised to ascend as the world’s third-largest gaming corporation, surpassed only by Tencent, the current market leader, and Sony, positioned at second.

Though the US Federal Trade Commission previously expressed reservations about this transaction, leading to a lawsuit against Microsoft, the court later determined that this acquisition did not culminate in a market monopoly. Despite the FTC’s disagreement with the verdict, obstructing the acquisition before its finalization now appears improbable.

However, the US Federal Trade Commission continues its efforts to impede Microsoft’s acquisition. Even if it can’t fully prevent the acquisition of Activision Blizzard, due to concerns over market monopoly, it may mandate Microsoft to divest certain or all aspects of Activision Blizzard’s operations.