June 21, 2024 03:16 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Pune woman hangs from building edge holding a man's hand just for an Instagram reel. Read here | BJP's Bhartruhari Mahtab appointed Pro Tem Speaker, Congress calls it 'first mistake' | Delhi Chief Minister Arvind Kejriwal gets bail in liquor policy case | CBI probe into UGC-NET 2024 has been ordered, says Education Ministry a day after cancelling exam | Darshan Thoogudeepa involved murder case: Renukaswamy's testicles were ruptured, face was half-eaten by dogs
Microsoft successfully completes mega $69 billion Activision purchase deal
Image Credit: wikipedia.org

Microsoft successfully completes mega $69 billion Activision purchase deal

| @indiablooms | 13 Oct 2023, 11:15 pm

London: Microsoft has successfully finalized its $69 billion acquisition of Activision Blizzard, marking a significant move in the video game industry, Bloomberg reported.

This acquisition elevates Microsoft to the third position worldwide, just behind Tencent Holdings and Sony Group.

Overcoming regulatory hurdles, Microsoft adjusted the merger agreement to satisfy UK authorities.

The US Federal Trade Commission, while unable to block the deal in court, continues its legal efforts through administrative channels, the report said.

The UK’s Competition and Markets Authority greenlit the deal with the condition of a restructuring plan, addressing concerns about competition in cloud-streamed gaming, it said.

Microsoft now looks to leverage this acquisition, especially in the mobile games sector, although delays have put them at a further disadvantage in this highly competitive market.

According to the report, Microsoft’s gaming chief Phil Spencer will be facing several challenges as the deal provides Spencer the basis for a plan to bolster the company’s mobile games business, which is behind the other players in the the over-saturated sector. 

The universally popular Candy Crush and its spinoffs are among Activision’s top titles.

Sony, the maker of PlayStation consoles, strongly opposed the deal, with its video games head, Jim Ryan, airing concerns that Microsoft might offer competitors an inferior version of its popular Call of Duty game, the Bloomberg report said.

In July, Microsoft and Sony agreed to a 10-year arrangement to keep future Call of Duty releases available on PlayStation consoles. Ryan announced his retirement from Sony in late September.

UK regulators had previously rejected the deal, citing potential consequences like higher prices, reduced choices, and diminished innovation for gamers.

The new agreement ensures that Microsoft cannot restrict access to Activision's crucial content on its own cloud gaming service or withhold these games from competitors, according to the regulator.

Established in 1979, Activision is the powerhouse behind some of the world's most beloved gaming franchises, including Overwatch, World of Warcraft, and Crash Bandicoot. Call of Duty alone has amassed over 425 million units in sales and generated over $30 billion in revenue prior to its most recent installment released last year.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.