Microsoft’s Landmark Acquisition: Activision Blizzard Deal Completes, Gaming Landscape Transforms
Microsoft has officially completed its acquisition of the renowned gaming giant, Activision Blizzard, following the final approval from the UK Competition and Markets Authority (CMA). This historic acquisition, valued at nearly $69 billion, represents the largest in Microsoft’s corporate history. The prolonged process, spanning almost two years, faced regulatory hurdles from both US and UK authorities due to concerns about potential impacts on the gaming industry.
The revised agreement, crucially accepted by the CMA, involves Microsoft transferring the cloud distribution rights of Activision games to French video game publisher Ubisoft. Despite this, Microsoft retains control over pivotal franchises like Call of Duty, World of Warcraft, and Candy Crush, which contribute significantly to the company’s revenue.
In an email to Microsoft employees, Phil Spencer, CEO of Microsoft’s gaming division, expressed his excitement, stating, “Today is a good day to play. We have completed the acquisition of Activision Blizzard and we welcome Activision Blizzard and its businesses to Microsoft Gaming.”
Addressing concerns about cross-platform accessibility, Spencer emphasized Microsoft’s commitment to inclusivity. Regardless of whether users play on Xbox, PlayStation, Nintendo, PC, or mobile, they are assured continued access to their favorite franchises.
Microsoft’s strategic focus post-acquisition revolves around the promotion of its cloud gaming service, Game Pass. This subscription-based service provides users access to a diverse library of content and is not restricted to a specific platform; it is available on computers and mobile phones. Spencer revealed plans to integrate the renowned game libraries of Activision, Blizzard, and King (developer of mobile games like Candy Crush) into Game Pass and other platforms in the coming months.
Despite the monumental nature of this acquisition, video games represent a relatively small segment of Microsoft’s total revenue, contributing around 7% during the last fiscal year. The completion of the Activision Blizzard acquisition positions Microsoft to expand its influence in the gaming industry and advance its initiatives in cloud gaming.