The gaming industry is no stranger to blockbuster deals and mega-mergers, but Microsoft's recent acquisition of Activision takes the cake as one of the most significant moves in the history of gaming. After months of negotiations and regulatory hurdles, the Competition and Markets Authority (CMA) has granted approval for this monumental takeover. However, there's a catch – cloud gaming rights will be excluded from the deal. Let's delve into the details of this transformative deal and its implications for the gaming world.
The Road to Approval
The journey towards Microsoft's acquisition of Activision has been nothing short of a rollercoaster ride. The CMA initially attempted to block the deal back in April, citing concerns about potential monopolization in the UK's cloud gaming market. After extensive negotiations and concessions, the CMA has finally given its blessing, allowing Microsoft to move forward with the acquisition.
This decision marks the end of a prolonged six-month battle between the CMA and Microsoft, which began with the CMA's efforts to block the deal but concluded with a compromise. With this regulatory approval, the deal, which was first proposed publicly in January of the previous year, can finally reach its long-anticipated completion.
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.
— Brad Smith (@BradSmi) October 13, 2023
Cloud Gaming Excluded
The CMA's approval comes with a notable condition – Microsoft must exclude cloud gaming rights from the acquisition. This condition aims to prevent Microsoft from obtaining a "stranglehold" over the UK cloud gaming market and intends to preserve competitive pricing for gamers while providing them with more choices.
As part of the arrangement, Ubisoft, the company behind the popular Assassin's Creed video game series, is poised to step in and acquire Activision's cloud gaming rights. This move not only upholds competition but also ensures that the gaming industry continues to evolve, adapt, and thrive.
Criticism for Prolonged Proceedings
While the approval of the acquisition is undoubtedly a significant milestone, the CMA has not hesitated to express its dissatisfaction with the process. Sarah Cardell, the CMA's chief executive, criticized Microsoft for "dragging out" proceedings during the investigation. She noted that Microsoft had the opportunity to restructure during the initial investigation but instead insisted on a package of measures that the CMA deemed ineffective. Cardell stated that prolonging the proceedings only led to wasted time and resources.
Microsoft's Perspective
On the other side of the table, Brad Smith, the President of Microsoft, expressed gratitude for the CMA's decision to approve the acquisition. He firmly believes that this acquisition will have a positive impact on players and the gaming industry on a global scale.
In the end, this deal, initially valued at a staggering $69 billion, will undoubtedly reshape the gaming industry's landscape. Microsoft's acquisition of Activision, despite the cloud gaming rights exclusion, promises to be a game-changer, impacting not only the gaming world but also the future of cloud gaming technology.
As the gaming industry continues to evolve, adapt, and grow, it remains to be seen how this acquisition will influence the development of new titles, technologies, and the overall gaming experience for enthusiasts worldwide. One thing is certain: Microsoft's ambitions in the gaming sector are making waves, and this acquisition is a testament to their commitment to the industry's future.