High Score: Microsoft Acquires Gaming Giant Activision-Blizzard for $69 Billion

Microsoft has acquired gaming giant Activision-Blizzard, concluding a process of intense scrutiny from competition regulators around the world, in a $69 billion purchase that is the largest in the video game industry’s history.

The proposed merger raised concerns that Microsoft will become too dominant in the video game space, a fear Microsoft has attempted to mitigate through promises not to make franchises like Call of Duty exclusive to its consoles.

Microsoft owns the Xbox games console, as well as a number of highly popular titles including Minecraft, Halo, and Age of Empires. Activision-Blizzard also owns a number of blockbuster titles, including the Call of Duty, Overwatch and Warcraft franchises. 

The merger cements Microsoft’s position as the second-largest video games company in the world, almost doubling its revenues in relation to Nintendo, and bringing it within striking distance of market leader Sony.

Here's a look at Microsoft's new position in the Big 3 hierarchy on a post-merger level.

Note that this isn't 100% precise and simply combines $ATVI and Xbox annual revenues together minus the Xbox revenues that Activision recognized for the year. pic.twitter.com/Soqgj2Tt8r

— Derek Strickland (@DeekeTweak) October 13, 2023

Microsoft swiftly closed the deal after receiving the nod of approval from the UK’s Competition and Markets Authority (CMA), the last major regulator that had been standing in the way of the acquisition.

Via the Verge:

Microsoft’s $68.7 billion deal to acquire Activision Blizzard has been approved by UK regulators. The UK’s Competition and Markets Authority (CMA) has concluded that the deal can proceed after Microsoft recently restructured the deal to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The decision clears the way for the deal to close now that the UK regulator has given the green light.

“The CMA has decided to give Microsoft Corporation (Microsoft) consent to acquire Activision Blizzard, Inc. (Activision) (the Parties) excluding Activision’s cloud streaming rights outside of the European Economic Area (EEA) (the Merger) subject to the condition that the sale of Activision’s cloud streaming rights completes prior to completion of the Merger,” reads a statement from the CMA.

While the U.S. Federal Trade Commission (FTC) has sought to block the deal, it was overruled by the U.S. Court of Appeals for the Ninth Circuit this summer. The FTC is appealing that decision, which raises the possibility of the U.S. regulator causing problems for Microsoft at a later date.