NEW YORK (AP) — Microsoft has completed its $69 billion acquisition of video game maker Activision Blizzard, completing one of the most expensive technology acquisitions in history that could impact the entire video game industry. .
The deal notification came seven hours after Microsoft received final approval from the UK competition watchdog. Blocking $69 billion in gaming transactionsremoves the last obstacle in the transaction.
Taking over the studio behind blockbuster games such as “Call of Duty,” “Diablo,” and “Overwatch” would be a boost for Microsoft’s Xbox, which ranks third in terms of sales after PlayStation and Nintendo. right. The software giant also has bigger ambitions to incorporate his Activision titles into his multi-game subscription service, which has Netflix-like features for video games.
The deal took nearly 22 months to close, reflecting concerns from rivals and government regulators that Microsoft would use its growing game collection to reduce competition. This is part of broader industry consolidation. Some independent game developers They fear they will be sidelined as the industry allocates resources to blockbuster franchises with a history of past success.
Blessings from Britain’s Competition and Markets Authority were expected. granted provisional approval Last month, the deal said it would harm competition and harm gamers, particularly in the emerging cloud gaming market where players can avoid buying expensive consoles and stream games to their tablets and mobile phones. Agreed to a revised Microsoft proposal aimed at addressing concerns.
“The new agreement will prevent Microsoft from locking in competition as the cloud gaming market takes off, and will help maintain competitive prices and services for UK cloud gaming customers,” the watchdog said. Stated.
Microsoft says, thorough review The decision to partner “will benefit players and the gaming industry around the world,” said company president Brad Smith.
Activision CEO Bobby Kotick said the game maker is “looking forward to becoming part of the Xbox team.”
Josh Chapman, managing partner at Convoy, a venture capital firm that invests in video game startups, said the partnership will benefit gamers and “be productive for the gaming industry as a whole.”
But it would also “significantly tip the balance of power” in favor of Microsoft, whose Xbox console lags behind Sony’s PlayStation and Nintendo, said George, senior principal analyst at technology research and advisory firm Omdia.・Mr. Jiziashvili said.
Microsoft “has a huge opportunity to shape the future of the gaming industry,” he said.
Since the partnership was announced in January 2022, Microsoft has received antitrust approvals in more than 40 countries.Importantly, it Endorsement from the European Union of 27 countries After agreeing to allow users and cloud gaming platforms to stream titles without paying royalties for 10 years.
However, the deal faced resistance from regulators in the UK and US. I’m worried that it will stifle competition. in the video game industry. Archrival Sony was also concerned that PlayStation gamers’ access to Activision’s long-running military shooter series Call of Duty would be restricted.
US Federal Trade Commission lost in court The transaction will be suspended so that it can be reviewed by an internal judge. The FTC has not given up, appealing the decision and last month filing a notice of plans to reopen the case. This indicates that US regulators intend to terminate the agreement even after the transaction is completed.
Meanwhile, UK regulators were the last major hurdle for the deal to proceed. To get that approval, Microsoft will sell cloud streaming rights for all current and new Activision games released over the next 15 years outside the EU and three other European countries to French game studio Ubisoft Entertainment.
British regulators initially blocked the deal over concerns that Microsoft could withhold Activision titles from the cloud gaming market. Then, in an unprecedented move, UK watchdog said it needed to reconsider.
One factor is the EU’s approval after Microsoft pledged to automatically license Activision titles royalty-free to cloud gaming platforms. According to court documents, another “material change in circumstances” Agreement signed by Microsoft with Sony To keep Call of Duty available on PlayStation for at least 10 years.
However, regulators still criticized the way the deal was put together and warned other companies not to use “the tactics employed by Microsoft.”
“Microsoft had the opportunity to reorganize during our initial investigation, but has insisted on a series of measures that we have told are completely ineffective,” Sara Cardell, the watchdog’s chief executive, said in a statement. I continued to do so.” “Prolonging litigation like this only wastes time and money.”
Max von Thun, head of the European office of the Open Market Institute, which supports stronger antitrust enforcement, said the UK regulator had made “significantly stronger commitments than the weak commitments accepted by the European Commission”. “The decision to impose structural relief on Microsoft is commendable.” .
But he said the CMA’s overturn made the UK regulator look “weak and indecisive”.
“There is a serious risk that merging companies and their advisors will no longer take no for an answer in future transactions with the CMA,” von Thun said.
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AP Technology Writer Matt O’Brien contributed from Providence, Rhode Island.
Kelvin Chan and Matt O’Brien, Associated Press
