How Microsoft's greenlit Activision deal could reshape the global games industry
Microsoft's proposed purchase of Activision Blizzard looks to clear its final hurdle soon. It could just be the start of consolidation in the US$250 billion sector.
Millions around the world have 10 November marked on their calendars. It's the day the new Call of Duty game drops on PlayStation, Xbox and PC platforms. By that time, it's likely Microsoft's acquisition of the game's developer, Activision Blizzard, will have finally have been granted the green light.
After unexpectedly blocking Microsoft's proposed $US69 billion ($107 billion) acquisition of Activision Blizzard in April, on Friday UK's competition watchdog signalled it would let the deal pass through. Microsoft restructured the proposal in August, saying it would not keep the rights to put Activision Blizzard's games on its cloud gaming service, leading the regulator to change its stance.
"It's pretty much there now," said Rob Nicholls, associate professor of regulation and governance at UNSW Business School. "What the CMA has said is that Microsoft has given enough assurances which will be enforceable for the transaction to go ahead."
The UK's CMA (Competition and Markets Authority) is improbably the last major regulator to approve the deal. The European Commission, often the hardest of the lot to appease, gave its blessing in May. The US FTC's attempt to block the acquisition was rejected in court two months later. The British authority has until 18 October to make its decision official.
