Microsoft finalizes Activision Blizzard acquisition

On 13/10/2023, Microsoft officially completed its acquisition of Activision Blizzard in a deal valued at $68.7 billion, with the total transaction cost reported at approximately $75.4 billion after adjustments. The purchase marked the largest acquisition in video game industry history and one of the biggest technology deals ever completed. The transaction brought major franchises including Call of Duty, Warcraft, Diablo, Overwatch, and Candy Crush under Microsoft’s gaming division. The deal closed after roughly 21 months of regulatory scrutiny from authorities in multiple jurisdictions. The United Kingdom’s Competition and Markets Authority initially blocked the acquisition in April 2023 over cloud gaming concerns. Microsoft later restructured the agreement by transferring cloud streaming rights for existing and new Activision Blizzard PC and console games to Ubisoft for 15 years, a change that helped address regulatory objections. Following this revision, the UK regulator approved the modified deal on 13/10/2023, allowing Microsoft to finalize the acquisition. Regulators in the European Union had previously approved the transaction in May 2023 with commitments related to cloud gaming licensing, while the U.S. Federal Trade Commission sought to block the merger but failed to secure a preliminary injunction in July 2023. After remaining legal and regulatory barriers were resolved, Microsoft announced the completion of the acquisition the same day approvals were finalized. Activision Blizzard then became part of Microsoft Gaming, with CEO Bobby Kotick remaining in place through the transition period before later departing. The acquisition significantly expanded Microsoft’s gaming portfolio across console, PC, mobile, and cloud services, adding Activision, Blizzard Entertainment, and King to Xbox Game Studios and related publishing operations.