Microsoft gets the go-ahead from U.K. regulators to buy Activision Blizzard

By Barbara Kollmeyer

Ending a lengthy saga, U.K. regulators on Friday gave Microsoft Corp. the go-ahead for the tech giant's $68.7 billion acquisition of videogame holding company, Activision Blizzard.

"The new deal for Microsoft to buy Activision without cloud gaming rights has been cleared after the CMA [ Competition and Markets Authority] concluded it would preserve competitive prices and better services," the regulator said in a press statement on Friday.

In August, Microsoft (MSFT) proposed changing the terms of its buyout offer to win U.K. approval, saying it would license Activision's (ATVI) cloud streaming to French videogame publisher Ubisoft Entertainment (FR:UBI) for games now through the next 15 years. Ubisoft shares rose 1% in Paris on Friday.

That appeared to go some way to satisfying the regulator, which said it would take another look at the deal and began a new investigation in August. That probe completed on Friday. The approval will smooth the path for Microsoft to meet an extended deal deadline of Oct. 18.

Microsoft last year agreed to buy Activision Blizzard for $95 per share. After announcing it would investigate the purchase more than a year ago, the CMA announced in April that it would oppose the deal.

"With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome," said Sarah Cardell, chief executive of the CMA on Friday.

But Cardell criticized Microsoft for not restructuring during its initial investigation, and instead insisting on measures that the regulator said would not be acceptable. "Dragging out proceedings in this way only wastes time and money," she said.

MarketWatch has reached out to Microsoft for comment.

-Barbara Kollmeyer

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10-13-23 0348ET

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