The deal, with a proposed value of approximately $69 billion (before adjustments based on stock value), is finally coming to fruition after it was first announced in January 2022. It immediately went under the microscope of many market watchdog agencies as it would have potentially allowed Microsoft to monopolize massively popular titles, especially “Call of Duty.” Over the last several months, Microsoft has gone to great lengths to convince and obtain approval from regulators around the globe. Besides government agencies, Microsoft also faced resistance from competitors, especially Sony, claiming the acquisition would give the former ultimate authority over the “Call of Duty” franchise.
Microsoft swore to make Activision’s titles, especially “Call of Duty,” available on all competitive platforms — including Sony’s PlayStation and Nintendo Switch — until 2030, revealed its sales figures for the first time in nearly a decade, and even conceded complete defeat in the metaphorical “console wars” to ensure the deal is approved in key markets worldwide. The UK CMA was the last major regulator preventing the deal, citing concerns about Microsoft’s monopoly in the cloud gaming segment following its finalization. Addressing these concerns, Microsoft restructured the deal in August 2023 and offloaded the cloud streaming rights for Activision’s games onto Ubisoft.
While granting approval, the CMA notes the acquisition will be “subject to the condition that the sale of Activision’s cloud streaming rights completes prior to completion of the Merger.”