As the merger clears opposition from FTC and other regulators, here’s the latest on the deal that could bring Xbox, Call of Duty, and Warcraft under one roof.
Microsoft has been attempting to persuade regulators around the world to clear its $68.7 billion acquisition of Activision Blizzard — the biggest deal of its kind the gaming industry has ever seen.
Amid concerns about its effect on competition in the industry — particularly in the nascent cloud gaming market — and in the face of ardent lobbying against the deal by competitor Sony, the U.K.’s Competition and Markets Authority first decided to block the acquisition, then agreed to further talks with Microsoft and Activision and has now given it the green light. The U.S. Federal Trade Commission has withdrawn its attempt to block the deal legally after a federal judge ruled in favor of Microsoft being allowed to close the deal. The European Union, meanwhile, has given the deal its seal of approval.
Here’s the latest on Microsoft’s plans to snap up Activision Blizzard.U.K. regulator formally clears deal, which is now expected to close imminently
After indicating its provisional approval on Sep. 22, The U.K.’s Competition and Markets Authority formally cleared Microsoft to close its acquisition of Activision Blizzard on Oct. 13, with the concession that cloud gaming rights for Activision Blizzard’s games will go to Ubisoft. With no other regulatory blocks outstanding — the EU is reportedly not going to reexamine the revised deal — Microsoft and Activision are expected to close the deal imminently. An announcement as early as Friday Oct. 13 had been expected.
In its statement, the CMA called Microsoft’s concession over cloud gaming rights “a gamechanger that will promote competition.” Activision Blizzard said, “The CMA’s official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox Team.” Microsoft president Brad Smith said, “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.”U.K. regulator gives provisional approval, removing last major obstacle to the deal
On Sep. 22, the U.K.’s Competition and Markets Authority said its concerns about the deal’s impact on competition in cloud gaming had been substantially addressed by Microsoft’s proposal to carve out the cloud gaming rights to Activision Blizzard games and sell them to Ubisoft. Although not yet final, the decision removes the last major regulatory hurdle to the deal closing before its Oct. 18 deadline. Read our full report.FTC withdraws its case against the merger, clearing way for talks
According to Reuters and Bloomberg, the Federal Trade Commission has withdrawn its administrative case against Microsoft’s acquisition of Activision Blizzard, which was due to go before an in-house judge in August. Microsoft and Activision had requested the case be withdrawn after the FTC lost its case arguing for a block on the deal in district court, and was denied an extension of a temporary block by an appeals court.
The move means Microsoft and Activision can now try to persuade the U.S. antitrust regulator to accept a settlement. After its loss in court, the FTC doesn’t have a lot of leverage, although Microsoft may offer some token of compromise to show that it’s willing to work with regulators and governments.Microsoft and Activision delay deal deadline by three months
On July 19, Microsoft and Activision announced that they had agreed to push back the deadline on the acquisition by three months, to Oct. 18. This will give the companies time to negotiate with the U.K. regulator and find a solution to its concerns. Read our full report.Microsoft and UK regulator given two months to arrive at new agreement
Microsoft and Activision’s appeal against the U.K. antitrust regulator’s decision to block the acquisition has been officially paused for two months while the two sides attempt to come to a new agreement. The U.K.’s Competition Appeal Tribunal allowed the pause on July 17, as reported by Reuters. The pause had been requested jointly by Microsoft, Activision, and the Competition and Markets Authority after Microsoft’s court victory against the U.S. Federal Trade Commission prompted them to see if a compromise could be reached.
The appeals process is now delayed until late September. Meanwhile, the CMA has also pushed its own deadline for making a final order until Aug. 29, but the regulator said it expects to be able to make a decision ahead of that date. According to Bloomberg, Microsoft and Activision will also choose to extend the deadline clause on their deal, which had been due to expire on July 18, in order to work things out with the CMA.Sony signs Call of Duty agreement with Microsoft, signaling end to its opposition of the deal
Sony has signed a deal with Microsoft that will keep Call of Duty available on PlayStation for 10 years after Microsoft’s acquisition of Activision Blizzard. Sony’s Jim Ryan had been holding out, hoping he could help regulators block the deal outright instead, but it seems he now expects the merger to close following Microsoft’s defeat of the FTC in court. Read our full report.FTC’s request to extend block on the deal fails
The FTC’s appeal against Judge Jacqueline Scott Corley’s July 11 ruling that Microsoft should be allowed to complete its acquisition of Activision Blizzard has hit a serious stumbling block. The FTC had sought emergency relief which would prevent the deal from being closed while the results of its appeal are determined. But the Ninth Circuit Court of Appeal has denied the FTC’s request.
“We appreciate the Ninth Circuit’s swift response denying the FTC’s motion to further delay the deal. This brings us another step closer to the finish line in this marathon of global regulatory reviews,” Microsoft’s Brad Smith said in a statement to The Verge. Microsoft is now free to complete the deal in the U.
