Current:Home > InvestMicrosoft’s bid for Activision gets UK approval. It removes the last hurdle to the gaming deal -Visionary Growth Labs
Microsoft’s bid for Activision gets UK approval. It removes the last hurdle to the gaming deal
View
Date:2025-04-27 17:28:20
LONDON (AP) — Microsoft’s purchase of video game maker Activision Blizzard won final approval Friday from Britain’s competition watchdog, reversing its earlier decision to block the $69 billion deal and removing a last obstacle for one of the largest tech transactions in history.
The Competition and Markets Authority’s blessing was expected after it gave preliminary approval last month to a revamped Microsoft proposal meant to address concerns that the deal would harm competition and hurt gamers.
It signals certain victory in the Xbox maker’s quest to acquire Activision, maker of the popular Call of Duty game franchise.
The companies had agreed to extend an original mid-July deadline to Oct. 18 to overcome the British regulator’s objections. The approval also helps Microsoft avoid paying Activision a $4.5 billion penalty if the deal doesn’t close.
“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” the watchdog said.
Microsoft President Brad Smith said the company was grateful for the “thorough review and decision.”
“We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” he said.
Activision CEO Bobby Kotick also welcomed the news: “We look forward to becoming part of the Xbox Team.”
Since the deal was announced in January 2022, Microsoft has secured approvals from antitrust authorities covering more than 40 countries. Crucially, it got a thumbs-up from the 27-nation European Union after agreeing to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.
But the deal faced resistance from British and American regulators who worried it would stifle competition in the video game industry. Top rival Sony also feared it would limit PlayStation gamers’ access to Call of Duty, Activision’s long-running military shooter series.
FILE - An image from Activision’s Call of Duty is shown on a smartphone near a photograph of the Microsoft logo in this photo taken in New York, June 15, 2023. Microsoft’s purchase of video game maker Activision Blizzard won final approval Friday, Oct. 13, from Britain’s competition watchdog, reversing its earlier decision to block the $69 billion deal and removing a last obstacle for one of the largest tech transactions in history. (AP Photo/Peter Morgan, File)
The U.S. Federal Trade Commission lost a court bid to pause the deal so that its in-house judge could review it. The FTC hasn’t given up, appealing the decision and last month filing notice of its plan to resume that trial. That signals the U.S. regulator’s intention to unwind the deal even after it closes.
In the meantime, the U.K. regulator was the last major obstacle to the transaction going through. The CMA’s approval came after Microsoft updated its offer in August.
Under the restructured deal, Microsoft will sell off cloud streaming rights outside of the EU and three other European countries for all current and new Activision games released over the next 15 years to French game studio Ubisoft Entertainment.
British regulators had initially blocked the transaction in April over concerns Microsoft could withhold Activision titles from the emerging cloud gaming market, where players can avoid buying pricey consoles and stream games to their tablets or phones.
Then, in an unprecedented move, the U.K. watchdog delayed its final decision, saying it needed to reconsider and agreeing with Microsoft to put appeal proceedings on hold.
One factor was the EU’s approval, granted after Microsoft promised to automatically license Activision titles royalty-free to cloud gaming platforms. Another “material change of circumstance” that the watchdog said it needed to consider, according to court documents, was an agreement Microsoft signed with Sony to make Call of Duty available on PlayStation for at least 10 years.
___
AP Technology Writer Matt O’Brien contributed from Providence, Rhode Island.
veryGood! (4135)
Related
- DoorDash steps up driver ID checks after traffic safety complaints
- John Cena Is Naked at the 2024 Oscars and You Don't Want to Miss This
- Oppenheimer Wins Best Picture at Oscars 2024
- Disney seeks major expansion of California theme park to add more immersive attractions
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Alabamians Want Public Officials to Mitigate Landslide Risk as Climate Change Makes Extreme Precipitation More Frequent
- Why Wes Anderson, Leonardo DiCaprio and More Stars Were MIA From the Oscars
- Kamilla Cardoso embarrasses South Carolina but sting will be fleeting
- Angelina Jolie nearly fainted making Maria Callas movie: 'My body wasn’t strong enough'
- Who won Oscars for 2024? See the full list of Academy Award winners
Ranking
- North Carolina justices rule for restaurants in COVID
- Kylie Jenner Stuns in New Sam Edelman Campaign: An Exclusive Behind the Scenes Look
- Read all about it: The popularity of turning captions on
- Driver pleads guilty to reduced charge in crash that killed actor Treat Williams
- What do we know about the mysterious drones reported flying over New Jersey?
- Why Robert Downey Jr.'s 'Oppenheimer' first Oscar win is so sweet (and a long time coming)
- Royal Expert Omid Scobie Weighs in On Kate Middleton Photo Controversy
- Sophia Bush and Ashlyn Harris Make Debut as a Couple at Elton John's 2024 Oscars Party
Recommendation
Meta releases AI model to enhance Metaverse experience
Meg Ryan Stuns in Rare Red Carpet Moment at Vanity Fair 2024 Oscars After-Party
Horoscopes Today, March 9, 2024
Princess Kate apologizes for 'editing' photo of family pulled by image agencies
US wholesale inflation accelerated in November in sign that some price pressures remain elevated
Biggest moments from the 2024 Oscars, from Emma Stone's surprise win to naked John Cena
Jimmy Kimmel calls out Greta Gerwig's Oscars snub, skewers 'Madame Web' in opening monologue
Liza Koshy plays off her Oscars red carpet fall like a champ: 'I've got my ankles insured'