The deal was put through a hefty regulatory review and has finally gained a favorable ruling from a U.S. district judge.by Activision on Friday. It's Microsoft's largest deal in its 48-year history and comes after the company quelled concerns about competition from European regulators and gained a favorable ruling from a U.S. district judge.
The deal gives Microsoft a hefty portfolio of video game franchises, including Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater and Warcraft. The game developer generated $7.5 billion in revenue in its, who took the helm in 2014, is aiming to diversify the company's business beyond its core areas such as operating systems and productivity software. Activision has been both a partner to Microsoft and a competitor.
Regulatory pushback delayed the acquisition. When it announced the deal in January 2022, Microsoft said it expected to close the transaction by the end of June 2023. In July, the two companiesThe Federal Trade Commission in the U.S., the European Commission and the U.K.'s Competition and Markets Authority all raised objections to the transaction.that placated Europe regulators.
Microsoft signed agreements with console rivals Nintendo and Sony, promising them access to Call of Duty games for 10 years. And Microsoft made similar arrangements with cloud-gaming providers, including Boosteroid, The FTC In July asked the San Francisco federal district court for a preliminary injunction to stop Microsoft and Activision from closing their deal before receiving full approval. But afterof hearings, a judge sided with the two companies. The agency took the case to the U.S. Appeals Court for the 9th Circuit, whichthat, assuming the deal closed, game publisher Ubisoft would receive cloud streaming rights for Activision's games for 15 years.