Experience a historic moment in the gaming industry as Microsoft completes its $68.7 billion acquisition of Activision Blizzard. This game-changing deal opens up new opportunities, expands platform availability, and aims to improve workplace culture. Find out more about the largest acquisition in gaming history.
Microsoft has officially completed its acquisition of Activision Blizzard for a whopping $68.7 billion, marking the largest acquisition in gaming history and one of the biggest in the tech industry overall. The road to this moment was filled with twists and turns, including initial resistance from the UK’s Competition and Markets Authority (CMA), which eventually approved the deal after Microsoft agreed to sell cloud gaming rights for Activision Blizzard titles to Ubisoft. Microsoft also secured 10-year agreements with Nintendo and various cloud-gaming companies, solidifying its position in the market. The Federal Trade Commission’s attempts to halt the acquisition were unsuccessful. With this deal, Microsoft aims to make a significant impact on the mobile gaming market and promises to continue shipping Call of Duty games on PlayStation, while potentially keeping other Activision Blizzard games off the platform. Additionally, Microsoft hopes to improve the workplace culture at Activision Blizzard and has implemented a labor neutrality agreement to facilitate employee unionization.
Microsoft completes $68.7 billion acquisition of Activision Blizzard
The blockbuster deal has finally closed after clearing antitrust hurdles
The long-awaited acquisition of Activision Blizzard by Microsoft has finally been completed, marking a historic moment in the gaming industry. The deal, valued at $68.7 billion, is not only the largest acquisition in gaming history but also one of the largest in the tech industry. After months of navigating through antitrust hurdles and regulatory challenges, Microsoft and Activision Blizzard can now move forward with their plans for the future.
Background and Timeline
The deal is the largest acquisition in gaming history and one of the largest in the tech industry
Microsoft’s acquisition of Activision Blizzard is a significant milestone for both companies and the gaming industry as a whole. With a price tag of $68.7 billion, this deal now holds the record for being the largest acquisition ever made in the gaming industry. It also solidifies Microsoft’s position as a major player in the tech industry, showcasing the company’s commitment to expanding its presence in the gaming market.
UK’s Competition and Markets Authority initially blocked the deal in April
The road to completing this acquisition was not without obstacles. The UK’s Competition and Markets Authority initially blocked the deal in April, raising concerns about its potential impact on the cloud gaming industry. The regulator believed that the merger could result in decreased competition and limited consumer choice. However, Microsoft was determined to overcome this hurdle and find a resolution that would satisfy the regulator’s concerns.
Microsoft agreed to sell cloud gaming rights to Ubisoft to win over UK regulator
To address the concerns raised by the UK regulator, Microsoft made the strategic decision to sell the cloud gaming rights for Activision Blizzard titles to Ubisoft. This agreement ensures that Activision Blizzard’s games will not only be available on Xbox Game Pass but also on Ubisoft+ and any other game-streaming service that Ubisoft collaborates with. By making this concession, Microsoft was able to demonstrate its commitment to promoting competition in the cloud gaming market and ultimately secure the approval of the UK regulator.
Microsoft signed 10-year agreements with Nintendo and cloud gaming companies
In addition to addressing the concerns of the UK regulator, Microsoft took further steps to solidify its position in the gaming industry. The company signed 10-year agreements with Nintendo and several other cloud gaming companies, allowing its titles to be available on their platforms. This strategic move not only expands Microsoft’s reach but also opens up new opportunities for collaboration and innovation in the gaming market.
Federal Trade Commission’s attempts to stop the deal over competition concerns have not been successful
While the deal faced challenges from the UK regulator, it also encountered opposition from the Federal Trade Commission (FTC) in the United States. The FTC attempted to block the acquisition on the grounds of competition concerns, but its efforts were ultimately unsuccessful. Despite the opposition, Microsoft was able to move forward with the deal and bring it to a successful completion.
Significance of the Deal
Activision Blizzard titles now available on cloud gaming platforms
One of the immediate effects of this acquisition is that Activision Blizzard titles will now be available on cloud gaming platforms. This means that gamers can access their favorite games from the comfort of their own device, without the need for dedicated gaming hardware. The availability of these titles on cloud gaming platforms represents a significant shift in the gaming industry and opens up new possibilities for the future of gaming.
Microsoft aims to become a major player in the mobile gaming market
By acquiring Activision Blizzard, Microsoft has positioned itself as a major player in the mobile gaming market. The popularity of mobile gaming has been on the rise in recent years, and Microsoft recognizes the potential for growth in this area. With the addition of Activision Blizzard’s vast portfolio of games, Microsoft can tap into the mobile gaming market and reach a wider audience of gamers.
Microsoft promises to continue shipping Call of Duty games on PlayStation
Microsoft has assured gamers that it will continue to release Call of Duty games on PlayStation platforms. This commitment to cross-platform availability ensures that gamers on different consoles can still enjoy the highly popular Call of Duty franchise. While Microsoft may consider limiting the release of other Activision Blizzard games on PlayStation platforms, there is a clear intention to maintain the availability of Call of Duty games on PlayStation.
Microsoft hopes to improve workplace culture at Activision Blizzard
One of the key motivations behind this acquisition is Microsoft’s desire to address and improve the workplace culture at Activision Blizzard. The company has faced allegations of a toxic work environment and misconduct, and Microsoft aims to implement measures to create a more inclusive and positive workplace environment. By leveraging its resources and expertise, Microsoft hopes to foster a cultural shift within Activision Blizzard and create a more supportive and inclusive workplace for its employees.
Labor neutrality agreement to go into effect for Activision Blizzard workers
To further support the well-being of Activision Blizzard employees, Microsoft has entered into a labor neutrality agreement with the Communications Workers of America (CWA). This agreement ensures that Activision Blizzard workers have the opportunity to unionize more easily and protect their rights as employees. The implementation of this agreement reflects Microsoft’s commitment to fostering fair and equitable labor practices within the gaming industry.
The deal opens up new possibilities for game streaming and platform availability
The completion of the acquisition between Microsoft and Activision Blizzard marks the beginning of an exciting chapter in the gaming industry. This deal opens up new possibilities for game streaming, allowing gamers to access their favorite titles from any device with an internet connection. Additionally, the availability of Activision Blizzard’s games on various platforms ensures that gamers can enjoy their favorite games regardless of the console they own. With Microsoft’s resources and commitment to innovation, we can expect to see exciting developments and advancements in the gaming landscape in the coming years.