News Update

Microsoft’s $69 Billion Bid For Activision Blizzard Blocked By UK Regulator

The proposed acquisition of Activision Blizzard, a renowned video game manufacturer behind hit games like Call of Duty, Candy Crush, Overwatch, and World of Warcraft, by Microsoft for a sum of $69 billion has been blocked by the Competition and Markets Authority (CMA) in the United Kingdom. The decision is a severe setback for Microsoft’s gaming industry ambitions and marks the largest-ever gaming deal that the CMA has prevented. The regulator’s primary concern is that the acquisition could impede competition in the rapidly emerging cloud gaming market, projected to be worth $13.7 billion globally by 2026.

The CMA’s decision follows the recent abandonment of its concerns regarding the impact of the deal on the console market dominated by Sony’s leading PlayStation, leaving cloud streaming services as the only remaining obstacle. In an effort to overcome this challenge, Microsoft entered into licensing agreements with streaming platform proprietors such as Valve, Nvidia, and Boosteroid. Additionally, Microsoft offered Sony a 10-year license for Call of Duty as part of an agreement to bring the franchise to Nintendo’s Switch.

Following the announcement, Activision’s shares plummeted by almost 12% to $76.65, causing the company’s market valuation to lose approximately $8 billion, thereby significantly damaging Microsoft’s gaming industry ambitions. On the other hand, Microsoft’s shares rose to their highest in more than a year following the release of better-than-expected quarterly revenue and profit reports.