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Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

Microsoft has completed its $69bn takeover of popular video game developer Activision Blizzard, marking the gaming industry’s largest-ever deal. Following approval from UK regulators, Microsoft, the owner of Xbox gaming consoles, finalized the global acquisition. Activision Blizzard is responsible for well-known gaming franchises such as Call of Duty and Candy Crush. The acquisition has garnered attention and raised concerns among competitors and regulators, but Microsoft’s Phil Spencer reassured gamers that they would remain welcome regardless of the console they play on. The deal is expected to unlock new possibilities for gaming and expand Microsoft’s presence in the industry.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

This image is property of ichef.bbci.co.uk.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

Overview

Microsoft has finalized its acquisition of Activision Blizzard, the maker of popular gaming franchises such as Call of Duty and World of Warcraft, in a deal valued at $69 billion. This acquisition marks the biggest-ever deal in the gaming industry. The UK regulators have given their approval for the global deal. As a result of the acquisition, Activision Blizzard CEO Bobby Kotick will step down. However, Microsoft Gaming CEO Phil Spencer reassures gamers that they will still have access to games on different platforms. This article will examine the effects of the deal on the gaming industry and competition.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

This image is property of ichef.bbci.co.uk.

Key Details

Microsoft has paid $69 billion in cash to acquire Activision Blizzard at a premium price of $95 per share. As a part of the deal, Microsoft has transferred the distribution rights for Activision’s games on consoles and PCs over the cloud to Ubisoft. This transfer includes major gaming franchises such as Call of Duty, World of Warcraft, and Candy Crush. The Competition and Markets Authority (CMA) has given its approval for the deal, but it has criticized Microsoft’s conduct during the approval process. Microsoft’s president, Brad Smith, expresses gratitude to the CMA for their decision. Additionally, Activision’s cloud streaming rights have been sold to Ubisoft for a period of 15 years outside of the European Economic Area (EEA).

Impact on Gaming Industry

Microsoft’s acquisition of major gaming franchises like Call of Duty and World of Warcraft will have a significant impact on the gaming industry. With Microsoft’s resources and expertise, these franchises have the potential for further expansion and innovation. The deal may also lead to changes in game prices and competition. Microsoft aims to boost demand for its Xbox console and Xbox Game Pass service through strategic initiatives. Additionally, there will be a transition of Activision’s mobile games studio to Microsoft, allowing for further growth in the mobile gaming market.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

This image is property of ichef.bbci.co.uk.

Reaction and Controversy

The acquisition has received mixed responses from regulators worldwide. PlayStation-maker Sony has expressed concerns about exclusive rights and market competition. The CMA’s initial blockage of the takeover has also created controversy. Some critics have raised questions about Microsoft’s tactics and conduct during the approval process. However, with the deal now complete, Microsoft has the opportunity to address these concerns and prove the benefits of the acquisition to the gaming industry.

Concessions and Restrictions

As a part of the deal, Microsoft has transferred the cloud gaming rights for Activision’s content to Ubisoft for 15 years. The CMA believes that this transfer will establish competition in the cloud gaming market and allow for the growth of rival companies. The 15-year timespan will provide an opportunity for other players to become established in the market. However, the long-term impact on Ubisoft’s role in the industry remains to be seen. The CMA’s involvement in ensuring competition and consumer choice is crucial in this deal.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

This image is property of ichef.bbci.co.uk.

Financial Details

CEO Bobby Kotick is set to receive a $400 million payout from the deal, while Chairman Brian Kelly will earn $100 million based on their shares in the company. The acquisition of major Activision titles like Call of Duty and Candy Crush is expected to generate significant revenue for Microsoft. This is a strategic move for Microsoft to increase its presence in the gaming industry and potentially become the third-biggest player behind Sony and Tencent.

Microsoft’s Growing Presence in the Gaming Industry

With the acquisition of Activision Blizzard, Microsoft aims to strengthen its position in the gaming industry. The company has the potential to surpass Nintendo’s market position and become a major player in the industry. The long-term implications of this deal for Microsoft’s gaming division are significant. This acquisition presents an opportunity for Microsoft to shape the future of the gaming industry and explore new avenues for growth and innovation.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

This image is property of ichef.bbci.co.uk.

Positive Impact on Gamers

The acquisition of Activision Blizzard by Microsoft is expected to have a positive impact on gamers. The deal will result in increased choice, innovation, and value for gamers. Microsoft’s resources and expertise can enhance gaming experiences and services. Additionally, the growth of the UK gaming industry can be further expanded through this acquisition. The concessions forced by the CMA will also benefit UK gamers by ensuring competition and consumer choice in the industry.

Conclusion

Microsoft’s completion of the $69 billion takeover of Activision Blizzard marks a significant milestone in the gaming industry. The acquisition has the potential to reshape the industry and bring about positive changes for gamers. With Microsoft’s resources and expertise, major gaming franchises like Call of Duty and World of Warcraft can continue to thrive and innovate. The gaming industry can expect ongoing updates and developments regarding this deal as Microsoft takes on new challenges and explores new opportunities to make a significant impact in the industry.

Source: https://www.bbc.co.uk/news/business-67080391?at_medium=RSS&at_campaign=KARANGA