Microsoft Seals Acquisition of Activision Blizzard for $69 Billion, the Highest in 48 Years

Microsoft has completed its $69 billion acquisition of video game publisher Activision Blizzard. This announcement was made according to the regulatory filing submitted to the company on Friday. 

So far, this is Microsoft's biggest deal in 48 years, and it’s coming after the company cancelled the probe on the competition between the U.K. and European regulators that was ruled in their favour by a U.S. district judge.

On Friday, the U.K.’s Competition and Markets Authority gave its approval to the deal, which led to its success.

The deal, which was announced in January 2022, gives Microsoft a huge portfolio of video game franchises, which includes Call of Duty, Overwatch, Diablo, Crash Bandicoot, StarCraft, Tony Hawk, Warcraft, and Pro Skater. 

From these games alone, the game developers got a total of $7.5 billion in revenue in its latest fiscal year, a small fraction of the $212 billion in sales reeled in by Microsoft.

Microsoft Gaming CEO Phil Spencer said in a blog post,

• Today we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms.

• We’ll share more about when you can expect to play in the coming months.

Also, the CEO of Activision Blizzard, Bobby Kotick, will oversee its operations until the end of the year.

The CEO of Microsoft, Satya Nadella, who took over governance in 2014, is aiming to increase the company's revenue by diversifying its business, which is strictly focused on operating systems and productivity software. 

Moreover, in the past, Activision has partnered with Microsoft and even a competitor. Amongst some large companies, Activision has been the one that releases popular games that cost hundreds of dollars to finish.

The deal, which was announced in January 2022, was expected to close on or before the end of June 2023, but was delayed due to some regulations. Although it wasn't possible, the two companies agreed that the deadline should be extended to October 18, 2023.

It was known that the Federal Trade Commission in the U.S., the European Commission, and the U.K.’s Competition and Markets Authority disapproved the transaction.

Microsoft made some adjustments that won over European regulators. The company said that consumers from this area will be given free licences to stream their Activision Blizzard games, along with free licences to streaming providers to enable European gamers to access the game through the cloud. 

Microsoft signed agreements with console rivals Nintendo and Sony, promising them access to Call of Duty games for 10 years. And Microsoft made similar arrangements with cloud-gaming providers, including Boosteroid, Nvidia, Nware, and Ubitus, Reports said.

The FTC In July asked the San Francisco federal district court for a preliminary injunction to stop Microsoft and Activision from closing their deal before receiving full approval. But after five days of hearings, a judge sided with the two companies. The agency took the case to the U.S. Appeals Court for the 9th Circuit, which denied a motion to temporarily stop the consummation of the deal, CNBC reported.

What FTC Said About the Acquisition

• We remain focused on the federal appeals process despite Microsoft and Activision closing their deals in advance of a scheduled December appeals court hearing.

• Microsoft and Activision’s new agreement with Ubisoft presents a whole new facet to the merger that will affect American consumers, which the FTC will assess as part of its ongoing administrative proceeding. The FTC continues to believe this deal is a threat to competition.

Frequently Asked Questions (FAQs)

Did Microsoft Buy Activision?

Microsoft acquired Activision Blizzard on October 13, 2023, after the company reached a deal worth $68.7 billion. Before this acquisition was completed, Activision Blizzard was an independent, publicly traded company owned by its shareholders.

How Much Did Microsoft Buy Activision For?

Microsoft bought Activision Blizzard for $69 billion on October 13, 2023.