The acquisition deal, which includes the purchase of the company responsible for popular gaming franchises such as "Call of Duty," "Overwatch," and "World of Warcraft," has faced several regulatory hurdles along the way. The UK's Competition and Markets Authority (CMA) had initially blocked the deal over concerns related to cloud gaming rights. However, Microsoft recently restructured the agreement to transfer these rights to Ubisoft, the developer behind the "Assassin's Creed" series, as a remedy.
The CMA, after reviewing the modified deal, granted preliminary approval late last month, bringing Microsoft one step closer to finalizing the acquisition. A final decision from the CMA is expected in the coming week, clearing the way for Microsoft to close the deal ahead of the extended deadline of October 18th, which was agreed upon by Microsoft and Activision.
This acquisition marks a significant milestone for Microsoft, as it positions the tech giant as a major player in the gaming industry. The company has been on a quest to expand its gaming portfolio, and with Activision Blizzard under its wing, it gains control of some of the most iconic gaming franchises in history.
Rob Kostich, the President of Activision Blizzard, sees this merger as an "extraordinary opportunity" for the company. He believes that by tapping into Microsoft's vast resources and suite of tools, the development teams can create even more immersive gaming experiences for players. However, Kostich also emphasized the need to allow the regulatory process to run its course.
One aspect of the deal that has garnered attention is the fate of popular titles like "Call of Duty." While Microsoft has expressed its intention to make as many Activision Blizzard games as possible available on Xbox Game Pass, it's clear that there will be a transition period to bring these games to the platform. Phil Spencer, the head of Xbox, has noted that "there's work for us to go do" to integrate these games into Game Pass.
The acquisition also raises questions about the future of Bobby Kotick, the current CEO of Activision Blizzard. While Kotick initially confirmed that he would remain CEO until the deal was officially confirmed, reports from sources suggest that he is expected to depart once the deal is finalized.
Additionally, the acquisition has not been without controversy, as it comes amid allegations of workplace harassment and discrimination within Activision Blizzard. Employees and activist groups have called for leadership changes and improved working conditions, even as the acquisition moves forward.
The Federal Trade Commission (FTC) in the United States has also been involved in the regulatory battles surrounding the acquisition. The FTC has appealed the outcome of a preliminary injunction hearing, and a decision is expected in early December. The FTC is also planning to resume its own administrative case against the acquisition, although experts believe that undoing the merger would be an unprecedented challenge.
As the gaming industry awaits the finalization of this historic acquisition, it's clear that Microsoft's entry into the world of Activision Blizzard has the potential to reshape the gaming landscape and bring new opportunities and challenges for players, developers, and industry stakeholders alike.