Microsoft has officially announced that it has completed its proposed acquisition of Activision Blizzard King for $68.7 billion. The acquisition was announced almost two years ago in January 2022. Additionally, it was confirmed that Bobby Kotick will step down as the CEO of Activision Blizzard at the end of 2023. The announcement follows the recent official approval of the deal by the United Kingdom antitrust regulator Competition and Markets Authority (CMA) who notably blocked the deal back in April due to cloud gaming concerns. However, in response to this, Microsoft sold Activision Blizzard’s cloud streaming rights to Ubisoft, allowing the CMA to launch a new investigation that resulted in its recent approval of the deal. As a result, Microsoft now has all the necessary approval from worldwide regulatory boards to allow the deal to finally be complete. A new trailer officially announcing the merger of Xbox and Activision Blizzard was also released.
The full message regarding the approval from the CMA:
In August this year Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights. This new deal will put the cloud streaming rights (outside the European Economic Area) for all of Activision’s PC and console content produced over the next 15 years in the hands of a strong and independent competitor with ambitious plans to offer new ways of accessing that content.
As a result of this concession, the Competition and Markets Authority agreed to look afresh at the deal and launched a new investigation in August. That investigation has completed today with the Competition and Markets Authority clearing this narrower transaction.
The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for United Kingdom cloud gaming customers. It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services. It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.
The full message from Phil Spencer regarding the announcement:
We love gaming. We play games, create games, and know first-hand how much gaming means to all of us as individuals and collectively, as a community. And today, we officially welcome Activision Blizzard and their teams to Xbox. They are the publishers of some of the most played and most beloved franchises in gaming history across console, PC and mobile. From Pitfall to Call of Duty, World of Warcraft to Overwatch, Candy Crush Saga to Farm Heroes Super Saga, their studios have pushed the boundaries of gaming for players around the world.
I’ve long admired the work of Activision, Blizzard, and King, and the impact they’ve had on gaming, entertainment, and pop culture. Whether it was late nights spent playing the Diablo IV campaign with friends from start to finish, gathering the entire family in the rec room for our weekly Guitar Hero night, or going on an epic streak in Candy Crush, some of my most memorable gaming moments came from experiences their studios have created. It is incredible to welcome such legendary teams to Xbox.
As one team, we’ll learn, innovate, and continue to deliver on our promise to bring the joy and community of gaming to more people. We’ll do this in a culture that strives to empower everyone to do their best work, where all people are welcome, and is centered on our ongoing commitment of Gaming for Everyone. We are intentional about inclusion in everything we do at Xbox—from our team to the products we make and the stories we tell, to the way our players interact and engage as a wider gaming community.
Together, we’ll create new worlds and stories, bring your favorite games to more places so more players can join in, and we’ll engage with and delight players in new, innovative ways in the places they love to play including mobile, cloud streaming and more.
Players have always been at the center of everything we do. And as we grow, we’ll continue to keep players at the heart of it all. We’ll continue to listen to your feedback, build a community where you can be yourself, where developers can do their best work, and continue to make really fun games. As promised, we will also continue to make more games available in more places—and that begins now by enabling cloud streaming providers and players to stream Activision Blizzard games in the European Economic Area, a commitment made to the European Commission. Today we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms. We’ll share more about when you can expect to play in the coming months. We know you’re excited—and we are too.
For the millions of fans who love Activision, Blizzard, and King games, we want you to know that today is a good day to play. You are the heart and soul of these franchises, and we are honored to have you as part of our community. Whether you play on Xbox, PlayStation, Nintendo, PC, or mobile, you are welcome here—and will remain welcome, even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win. We believe our news today will unlock a world of possibilities for more ways to play. Thank you for the ongoing support. We have so much more to come in the months ahead—I’m excited for the future and cannot wait to share it with you.
—Phil Spencer
Bobby Kotick, Activision Blizzard CEO:
Team,
Today marks a milestone in our company’s celebrated history.
Combining with Microsoft will bring new resources and new opportunities to our extraordinary teams worldwide. It will also enable us to deliver more fun, more joy, and more connection to more players than ever before.
This moment is possible because of your efforts over four decades to innovate, inspire, and achieve.
When Brian Kelly and I began this journey in 1991, we intended to build a company that would have great impact and lasting value. Your tireless work and unwavering commitment to excellence enabled us to do just that. In the 1980s, we pioneered independent, third-party game development with Pitfall, River Raid, and Kaboom. In the 1990s, we united the world with online multiplayer games like MechWarrior, Warcraft, and StarCraft. In the 2000s, we introduced Call of Duty, which became one of the most successful entertainment franchises in history. We also introduced Guitar Hero and Tony Hawk’s Pro Skater, which entered popular culture in ways few videogames ever have. In the 2010s, we debuted Candy Crush Saga, which to date has been downloaded more than five billion times and contributed to our total worldwide players being fifty percent female.
Your dedication is what makes it possible for us to continually push envelopes, break records, and delight players. Amid the uncertainty of the last 21 months, you’ve remained focused, as always, on serving our players and supporting each other.
I have long said that I am fully committed to helping with the transition. Phil has asked me to stay on as CEO of Activision Blizzard King, reporting to him, and we have agreed that I will do that through the end of 2023. We both look forward to working together on a smooth integration for our teams and players.
Brian and I couldn’t be more excited for the next chapter for Activision Blizzard King. We now join one of the most successful global companies, poised for unprecedented opportunities to connect the world through our games.
As a part of Microsoft, we will be even better, together.
—Bobby Kotick
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