After almost two years, Microsoft has finally closed the $68.7 billion deal and acquired Activision Blizzard. Confirmed by Phil Spencer, head of gaming at Microsoft, the deal comes after the final approval from UK's Competition and Markets earlier today. The acquisition puts Activision Blizzard, developers Infinity Ward, Raven Software, Sledgehammer Games, Treyarch, Toys for Bob, Beenox and High Moon Studios, as well as the mobile game maker King, which is known for its Candy Crush game, all under Xbox Game Studios.

In case you missed it, Microsoft announced its intention to acquire Activision Blizzard back in January 2022, after which it started its battle with various regulators, including UK's CMA, the European Commission, the US Federal Trade Commission, and others. In its extensive statement, Phil Spencer, head of gaming at Microsoft, once again confirmed that they will continue to make more games available in more places, as it promised to the European Commission, and they can now start the work to bring all those franchises to Game Pass and other platforms. Earlier this week, Activision Blizzard confirmed it expected to start adding titles to Game Pass in 2024, if the aforementioned deal goes through.

Microsoft's proposed $69 billion takeover of Activision Blizzard got the "go ahead" from the vast majority of regulatory bodies around the world, but the UK's Competition and Markets Authority (CMA) ultimately chucked a spanner into the works—consequently the deal's signing off date was delayed into the autumn. The top brass at Microsoft and Acti-Blizz have worked on a revised set of terms (to address concerns raised earlier this year), and the outcome has been semi-positive. The competition watchdog appears to be satisfied, prior to making a concrete announcement: "While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues. The CMA is now consulting on the remedies before making a final decision."

Under the newly redrafted deal—submitted for approval last month—Microsoft has agreed to transfer the rights to stream Activision games from the cloud to French video games publisher—Ubisoft—for a 15 year long term. The CMA's freshly published press release provides an insight into future infrastructures: "Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed. The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player."

The UK's Competition and Markets Authority (CMA) has set further restrictions on Microsoft and Activision Blizzard, thus preventing the mega corporations "acquiring an interest" in each other. An interim order has been published and uploaded to the United Kingdom government's website, as of last week - stating that these companies would require "prior written consent" from the CMA before the making of any business deals. The order is applicable to their main entities as well as smaller subsidiaries.

It was reported a week ago that Microsoft was lawyering up in preparation for its appeal against the UK ban of the $69 billion acquisition (encompassing Activision, Blizzard Entertainment, and King Digital Entertainment). Rumors emerged just before last weekend that EU regulators had largely approved the merger - with Reuters claiming that the deal had received clearance from the European Commission.

The United Kingdom Competition and Markets Authority (UK-CMA) on Wednesday blocked the proposed $68.7 billion merger of Microsoft and Activision-Blizzard. In its press-releasing announcing its final decision into an investigation on the question of how the merger will affect consumer-choice and innovation in the market, the CMA says that the merger would alter the future of cloud gaming, and lead to "reduced innovation and less choice for United Kingdom gamers over the years to come." Cloud gaming in this context would be games rendered on the cloud, and consumed on the edge by gamers. NVIDIA's GeForce NOW is one such service.

Microsoft Azure is one of the big-three cloud computing providers (besides AWS and Google Cloud), and the CMA fears that Microsoft's acquisition of Activision-Blizzard IP (besides its control over the Xbox and Windows PC ecosystems), would "strengthen that advantage giving it the ability to undermine new and innovative competitors." The CMA report continues: "Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job." Microsoft and Activision-Blizzard are unsurprisingly unhappy with the verdict.

The Sky UK news network has gathered intel from industry and government sources about an industry event that is due to take place next week at a very famous location - 10 Downing Street - the residence of the UK's Prime Minister. Sky News has been informed that Microsoft has been invited to attend the showcase by the UK Interactive Entertainment (UKIE) industry organization - best described as the main trade body for the nation's games and interactive entertainment sector. The American technology behemoth is expected to display and demonstrate their Xbox gaming product range in front of top politicians and key entertainment industry figures. There is no mention of representatives from Sony Interactive Entertainment (SIE) being invited to attend in a similar capacity. The timing of this UKIE organized event (to take place on April 26) is highly controversial as it will coincide with the UK's Competition and Markets Authority's statutory deadline to deliver a Phase-2 verdict on Microsoft's proposed acquisition of Activision Blizzard.

The UK Competition and Markets Authority (CMA) regulatory body has already delivered a provisional approval of the aforementioned deal, but stated that it required more time to investigate the potential for irregularities in competition within the cloud gaming sector. The Phase-2 verdict, due to be delivered next week, is anticipated to include the antitrust watchdog's finalized judgement on cloud gaming market affairs. Sky's insider sources in the city of London have speculated that Microsoft could face a humiliating situation at the 10 Downing-hosted party, if by coincidence the CMA changes its opinion on the Activision Blizzard takeover bid. If the competition regulator stays consistent with its (earlier) provisional decision, Microsoft could be criticized for its extensive courting of government organizations - not only in the UK, but around the world.

Sony is not happy about the UK's Competition and Markets Authority (CMA) recent provisional approval of Microsoft's proposed acquisition of Activision Blizzard, and has highlighted the apparent removal of a Microsoft-owned game from being developed on the PlayStation 5. According to legal documents submitted to the UK government, Sony has taken issue with the watchdog's sudden change in opinion - the CMA's position was highly critical at the start of the year - and suspects that Microsoft's expensive PR campaign and submitting of "new evidence" to international competition regulators have influenced a change in direction of rulings. Sony's statement bears down on the unfair nature of the bid's approval: "The CMA's reversal of its position on its consoles theory of harm is surprising, unprecedented, and irrational."

Japan's Fair Trade Commission (JFTC) was the latest anti-trust governing body to give the takeover a thumbs-up, almost two weeks ago - a dramatic turn of events given that it happened on Sony's home turf. The embattled electronics corporation has taken notice of fresh developments in the press, and proceeded to mention controversy surrounding the Redfall platform war. Harvey Smith, the game's creative director, let slip too many details during a promotion tour and seemingly admitted that the higher-ups at Microsoft's Xbox division had decided to can the PlayStation 5 version of Redfall in favor of keeping it exclusive to Xbox, Game Pass and PC. Arkane Studios, as part of the ZeniMax Media Group, was acquired by Microsoft in 2021 - and certain games, already in development, were later released on the PlayStation 5 as timed exclusives, Deathloop being a prime example of this.

The UK's Competition and Markets Authority (CMA) regulatory body has today delivered its provisional approval of Microsoft's proposed purchase of the Activision Blizzard group, but has added that it will conduct further reviews into the topic of whether the buyout will have any detrimental effect on competition in the area of cloud gaming services: "where the CMA is continuing to carefully consider the responses provided in relation to the original provisional findings. The CMA's merger investigation continues, and it remains due to issue its final report by 26 April 2023."

The antitrust watchdog's stance looks to have changed in a significant way since February, when it declared that Microsoft's proposed acquisition of Activision Blizzard had the potential to "harm U.K. gamers". New evidence has been presented to the CMA in recent weeks, and its members have moved to provisionally conclude that: "overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the UK."