U.K. Competition Regulator Greenlights Microsoft’s Activision Blizzard Acquisition

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I am a Breaking News Reporter at Forbes, with a focus on covering important tech policy and business news. Graduated from Columbia University with an MA in Business and Economics Journalism in 2019. Worked as a journalist in New Delhi, India from 2014 to 2018.

The U.K.’s Competition and Markets Authority has approved Microsoft’s $68.7 billion acquisition of video game publisher Activision Blizzard, removing the final regulatory hurdle for a deal first announced in January last year.Microsoft’s restructured deal—which transfers the cloud gaming rights for Activision Blizzard’s game to French publisher Ubisoft in some markets—addresses its concerns about competition in the emerging cloud gaming space.

The regulator said Microsoft’s cloud gaming related concessions are a “gamechanger that will promote competition” and preserve “competitive prices” for cloud gamers in the U.K. The restructured deal means that Microsoft will not control the cloud gaming rights for Activision Blizzard’s games outside the EU—giving Ubisoft these rights for 15 years.

The deal allows Ubisoft to license Activision’s games for Microsoft’s Xbox Cloud Gaming service, along with competitors like Sony.: “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.”With the final regulatory hurdle cleared, Microsoft now has the green light to close the deal.

 

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