In a decision that is set to significantly alter the dynamics of the global gaming industry, the United Kingdom’s Competition and Markets Authority (CMA) has given its final approval to Microsoft’s acquisition of the video game behemoth Activision Blizzard. This merger, valued at a jaw-dropping $69B, stands as one of the most substantial in the annals of the gaming industry.

The news of Microsoft’s intent to acquire Activision Blizzard first surfaced in early 2023. The deal, which was valued at $69B, created ripples across the gaming industry. Activision Blizzard, a powerhouse in the gaming world, is celebrated for its globally popular titles such as “Call of Duty,” “World of Warcraft,” and “Overwatch.” This acquisition signifies a considerable augmentation of Microsoft’s already impressive gaming portfolio.

“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,” says Xbox chief Phil Spencer. “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.”

The market reacted positively to the news of the approval. Shares of both Microsoft and Activision Blizzard saw a slight increase of 0.1% in pre-market trading.

Navigating Through Regulatory Challenges

The journey to this mega-merger was fraught with challenges. In April 2023, the CMA initially put a halt to Microsoft’s acquisition of Activision Blizzard. The regulatory body voiced concerns that the deal could potentially stifle competition within the gaming industry, thereby negatively impacting both gamers and developers.

In response to these concerns, Microsoft undertook a restructuring of the deal. As part of this restructuring, Microsoft agreed to sell Activision’s streaming rights to Ubisoft Entertainment. This move was aimed at addressing the competition concerns raised by the CMA and ensuring that gamers would continue to have access to a diverse range of gaming experiences.

Moreover, under the revised proposal that was eventually approved by the CMA, users will have the option to choose non-Windows operating systems for accessing Activision content. This decision was seen as a significant step towards maintaining competition within the industry and ensuring that gamers are not restricted by their choice of operating system.

Final Approval and Its Far-Reaching Implications

With the UK’s approval now in place, Microsoft is expected to close the deal by Oct. 18. Earlier this year, the European Union had already given its nod for the deal. However, it faced opposition from the U.S. Federal Trade Commission (FTC). Despite this opposition, courts prevented the FTC from banning the deal.

The CMA’s approval effectively removes the last major global regulatory obstacle that stood in the way of this mega-merger. The agency stated that it believes this decision will help preserve competitive prices and improve services for consumers.