Microsoft completes $68.7 billion acquisition of Activision Blizzard, a new era for gaming begins
Posted : 14 October 2023
Microsoft has successfully concluded its acquisition of game developer and publisher Activision Blizzard, marking the end of a year and a half of challenging negotiations with global competition regulators.
Valued at $68.7 billion, this acquisition, announced in January 2022, is the largest in the gaming industry's history, positioning Microsoft as a major player in gaming and esports.
The merger faced intense scrutiny from regulators worldwide who were concerned about the potential impact on competition, particularly in the console and emerging cloud gaming markets.
Regulatory hurdles were encountered, including opposition from the US Federal Trade Commission (FTC) and a rejection by the UK's Competition and Markets Authority (CMA) in April 2023.
Over this period, Microsoft offered various concessions to demonstrate that competition would not be harmed, including establishing long-term agreements with rivals like Nintendo, Sony, and Ubisoft.
Ultimately, the CMA approved the merger on October 13, paving the way for its formal completion the same day. As a result, Activision Blizzard's stock is no longer trading on the NASDAQ stock exchange.
This significant acquisition occurs against the backdrop of uncertainties surrounding the future of Activision Blizzard's esports leagues, such as the Overwatch League, which is facing challenges due to declining viewership, discontent among franchise owners, and high operating costs.
Microsoft's acquisition of Activision Blizzard in 2022 coincided with a tumultuous period for the game developer, marked by allegations of sexual harassment, a toxic workplace culture, and concerns related to union activities.
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