Microsoft is buying Activision Blizzard for $68.7 billion

[CyberTech]

Content source

https://www.neowin.net/news/microsoft-is-buying-activision-blizzard-for-687-billion/

Activision Blizzard has been in hot water recently due to workplace misconduct allegations, misogynist culture, and more. Multiple lawsuits have been leveled against the publisher and the most recent reports even indicate that almost 40 employees have exited the company since July 2021 and CEO Bobby Kotick's failure to take definitive action.

In a massive surprise today, Microsoft has announced that is buying Activision Blizzard in an all-cash deal worth $68.7 billion, with each share valued at $95. Until the transaction is finalized, both Microsoft and Activision will continue to operate separately. However, once the deal is done, Activision will report directly to Microsoft, or more specifically, Phil Spencer.

With the acquisition of Activision and its 10,000 employees across various studios, Microsoft will become the third-largest game company globally in terms of revenue. The Redmond tech firm will absorb all of Activision's IP including Call of Duty, Candy Crush, Overwatch, Diablo, and Warcraft. Xbox chief Phil Spencer had the following to say about the transaction:

Microsoft is buying Activision Blizzard for $68.7 billion

In a surprise announcement, Microsoft has revealed that it is buying Activision Blizzard in an all-cash deal worth $68.7 billion. Activision has been in a lot of hot water recently due to lawsuits.

www.neowin.net

 

[upnorth]

Microsoft's $68.7bn (£55m) deal to buy video game company Activision Blizzard has been blocked in the UK by the Competition and Markets Authority.

The proposed takeover would see Microsoft acquire such hit titles as Call of Duty and Candy Crush. But the regulator said it was concerned the deal would offer reduced innovation and less choice for gamers in the fast-growing cloud gaming business. Microsoft said it would appeal against the decision.

The CMA said it was not concerned that the deal would distort competition in the console gaming market. But Martin Coleman, who chaired an independent panel that investigated the proposal for the regulator, said it was vital to protect competition in the "emerging and exciting market" of cloud gaming.

Microsoft's Activision takeover blocked in UK

The Competition and Markets Authority says the deal would offer less choice for gamers.

www.bbc.com

 

[blackice]

The political posturing around this deal is laughable. The consolidation in the tech industry has been going on for decades and somehow now this is the deal that lawmakers are worried about!?

 

[upnorth]

Microsoft's president has attacked the UK after it was blocked from buying US gaming firm Activision, saying the EU was a better place to start a business.

The move was "bad for Britain" and marked Microsoft's "darkest day" in its four decades of working in the country, Brad Smith told the BBC. The regulator hit back saying it had to do what's best for people, "not merging firms with commercial interests". The UK's move means the multi-billion dollar deal cannot go ahead globally. The gaming industry's biggest-ever takeover worth $68.7bn (£55bn) would see Microsoft get hold of massively popular games titles such as Call of Duty, Candy Crush, and World of Warcraft. US and EU regulators have yet to decide on whether to approve the deal, but the UK regulator said its move would mean it could not go ahead globally. "Activision is intertwined through different markets - it can't be separated for the UK. So this decision blocks the deal from happening globally," the Competition and Markets Authority said.

This merger is important for Microsoft because it wants to strengthen its position in the fast-growing cloud gaming market. Rather than buying games consoles, then games to play on them, cloud gaming means fans can stream titles via the internet. Microsoft has already invested a lot in this space, as it sees the future of gaming as people playing on their phones, consoles, smart TVs and other devices. The Activision deal would also give it some very popular games titles, allowing it to compete more effectively with rivals like Sony.

Sony's position is that if the deal went ahead, Microsoft would have an incentive to restrict access to Activision's titles to PlayStation, which would be bad for gamers. The CMA said Microsoft already had a 60-70% share of the cloud gaming market, and combining with Activision would "really reinforce" its "strong position". "That would be problematic because it would really harm the ability of other competing cloud platforms to compete effectively and offer the kind of innovation and product choice that we want to see in this market," Ms Cardell said.

Furious Microsoft boss says confidence in UK 'severely shaken'

Stopping it buying gaming giant marks firm's "darkest day" in UK, as it says EU a better place to start a business.

www.bbc.com

 

[vtqhtr413]

Microsoft has seemingly picked itself up pretty quickly after the momentous CMA decision that blocked its acquisition of Activision Blizzard moments before the deal was to be certified. Following the decision of the UK government to block Microsoft’s attempted acquisition, the tech giant announced yet another 10-year deal with the cloud gaming platform Nware. Microsoft president Brad Smith made the agreement public via a short tweet. “Our other recent commitments will make more popular games available on more cloud gaming services”, Smith said in his tweet.

Microsoft is back on the offensive, signing yet another 10-year deal for cloud gaming

Tenth time's the charm

www.techradar.com

 

[upnorth]

EU regulators have approved Microsoft's $69bn (£55bn) attempt to purchase Call of Duty publisher Activision Blizzard.

The European Commission (EC) said Microsoft had addressed their concerns on competition issues. It comes three weeks after the UK blocked the deal over worries it would hurt competition in the emerging cloud gaming business. The proposed takeover is poised to be the biggest deal in gaming history but has split global regulators. In order for the deal to go through Microsoft and Activision need approval from regulatory bodies in the UK, EU and the US.

Microsoft's Activision takeover approved by EU after UK veto

The UK has already blocked the deal over concerns it would affect competition in the cloud gaming.

www.bbc.com

 

[MuzzMelbourne]

Hahaha... can't wait to hear the EU's take on this. Should be a spectacular document to read...

 

[Gandalf_The_Grey]

Microsoft Defeats FTC Again, Can Acquire Activision Blizzard

In yet another legal victory for Microsoft, a U.S. Appeals court has ruled against the Federal Trade Commission’s (FTC’s) emergency motion to halt the software giant’s acquisition of Activision Blizzard.

“The motion to file the district court’s preliminary injunction opinion under seal is granted,” the very brief decision issued by the U.S. Court of Appeals for the 9th Circuit reads. “The motion for injunctive relief is denied.”

“We appreciate the Ninth Circuit’s swift response denying the FTC’s motion to further delay the deal,” Microsoft president Brad Smith said. “This brings us another step closer to the finish line in this marathon of global regulatory reviews.”

As I’m sure you know, Microsoft easily defeated the FTC’s attempt to block its Activision Blizzard acquisition after a late June hearing. But the FTC filed an emergency motion two days later over fears that Microsoft would quickly finalize the transaction. Today’s ruling denies that motion, handing the FTC the back-to-back legal defeats it deserves.

Microsoft no longer faces any legal hurdles in the U.S. in its bid to acquire Activision Blizzard before the deal’s July 18, 2023 deadline. The two companies are now free to conclude the deal as soon as tomorrow, Saturday, July 14.

That said, the acquisition still faces a single legal challenge, in the UK, as that country’s Competition and Markets Authority (CMA) decided to block the transaction in April. But when the FTC was soundly defeated earlier this week, the UK CMA announced that it would renegotiate with Microsoft in an attempt to answer its (nonsensical) concerns. It then quickly claimed that such a renegotiation would require a new investigation on its part, a lengthy process, and so the most likely outcome is that Microsoft will simply finalize the acquisition and then negotiate with the CMA afterward on its own slow schedule.

Microsoft Defeats FTC Again, Can Acquire Activision Blizzard

A U.S. Appeals court has ruled against the FTC's emergency motion to halt the software giant's acquisition of Activision Blizzard.

www.thurrott.com

 

[Gandalf_The_Grey]

UK CMA Backtracks Again, Speeds Toward Microsoft/Activision Blizzard Approval

Less than one hour after Microsoft’s legal victory against the U.S Federal Trade Commission (FTC) on Friday, the UK Competition and Markets Authority (CMA) backtracked again and said that it could approve the software giant’s acquisition of Activision Blizzard more quickly than previously expected. This means that Microsoft could now acquire the gaming firm with the CMA’s approval within a few weeks.

“The Inquiry Group aims to discharge its duty as soon as possible and in advance of [the original August 29 date],” a CMA statement reads. Separately, the CMA said that a “detailed and complex submission” from Microsoft, which contains concessions aimed at appeasing the regulatory body, triggered the revised timetable.

Microsoft’s acquisition of Activision Blizzard has been approved by antitrust regulators around the world, with only the FTC and CMA choosing to block the deal, both for nonsensical reasons. But the CMA has seemed confused and adrift since the FTC’s legal challenges crumbled in the face of judicial review, leaving it the one regulatory holdout on the planet.

UK CMA Backtracks Again, Speeds Toward Microsoft/Activision Blizzard Approval

Less than one hour after Microsoft's legal victory against the FTC on Friday, the UK CMA blinked and backtracked yet again.

www.thurrott.com

 

[Ink]

Sony has agreed to a deal for Call of Duty with Microsoft to keep the franchise on PlayStation after the proposed Activision Blizzard acquisition. Microsoft Gaming CEO Phil Spencer says Sony and Microsoft have agreed to a “binding agreement” to keep Call of Duty on PlayStation. It’s not immediately clear if this is a 10-year deal, like Microsoft has signed with Nintendo and other cloud providers.

The deal comes after months of discussions and counteroffers over the past 18 months between Microsoft and Sony over the future of Activision content on PlayStation.

Microsoft is hoping to close its Activision deal by its July 18th deadline, but it’s possible we’ll see a small delay to the close to allow for the UK situation to be resolved.

Sony agrees to a Call of Duty deal with Microsoft

The deal means Microsoft and Sony’s Call of Duty battle is over

www.theverge.com