Call of Duty maker to be bought by Microsoft

[6Foot2]

Link: Call of Duty maker to be bought by Microsoft - BBC News

 

Microsoft's revised offer to buy Call of Duty-maker Activision Blizzard has been approved by UK regulators.

 

The Competition Markets Authority (CMA) said the updated bid had addressed concerns, after it blocked the original $69bn (£59bn) deal in April.

 

Microsoft will hand the rights to distribute Activision's games on consoles and PCs over the cloud to France's Ubisoft.

 

Despite approving the deal, however, the CMA criticised Microsoft.

 

After the competition watchdog blocked the takeover in April, Microsoft's president Brad Smith said it was "bad for Britain".

 

On Friday, CMA chief executive Sarah Cardell said: "Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA.

 

"Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn't work. Dragging out proceedings in this way only wastes time and money."

 

The CMA said the revised offer would "preserve competitive prices" in the gaming industry and provide more choice and better services.

 

"With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market," Ms Cardell said.

 

Mr Smith said Microsoft was "grateful for the CMA's thorough review and decision".

 

He said the "final regulatory hurdle" had been crossed for the tech giant to complete the deal, while a spokesman for Activision Blizzard said the approved deal was "great news".

 

The deal marks a huge shift for the games industry. It further cements Microsoft as a video game giant, much to the consternation of its main rival Sony, owner of the PlayStation console.

 

Sony has strongly opposed this deal over concerns that big Activision titles like Call of Duty could become Xbox exclusives over time.

 

The PlayStation currently outsells Microsoft's Xbox but like all entertainment platforms, the key to success is access to the best content.

 

Sony is also not averse to buying up successful studios. But Activision Blizzard is in a league of its own, and Microsoft knows that.

 

Following eight years in development and much anticipation, another large studio called Bethesda finally launched its new game Starfield in 2023 - but only on Xbox and PC.

 

Who owns Bethesda? Microsoft.

[Brax]

I think it's bonkers. Two big game companies that have merged and are now merging with a bigger company...

[paulkerton]

I think it's bonkers. Two big game companies that have merged and are now merging with a bigger company...

 

Why is that bonkers? Mergers and takeovers happen all the time.

[Rob_D]

Why is that bonkers? Mergers and takeovers happen all the time.

 

It's a big step along the road toward just one or two massive conglomerates owning everything.

Although the big/scary one would be if either MS or Sony managed to buy Valve.

[Brax]

It's a big step along the road toward just one or two massive conglomerates owning everything.

Although the big/scary one would be if either MS or Sony managed to buy Valve.

Yes pretty much this. Especially since both those companies don't exactly produce flop games and monetise everything they can.

[foofighterjim]

Possibly a bad comparison, but very little gets said when Sony pays a third party studio such as Square Enix, for console exclusivity of games like Final Fantasy XVI. I can understand this when it is first party studios involved, as has been the case since the early days of consoles. But how is this not deemed anti-competitive?

[JJonas]

It has been passed by nearly all of the regulators, only the FTC wants to try and fight it in court

 

https://en.wikipedia.org/wiki/Proposed_acquisition_of_Activision_Blizzard_by_Microsoft#Regulatory_response

[DalekSec]

I think it's bonkers. Two big game companies that have merged and are now merging with a bigger company...

 

'Capitalism'

 

Don't think it's bonkers, comes are allowed to buy/merge other companies. Apple do it like its going out of fashion. Microsoft also.

 

More close to Home Vodafone and 3 merging

[Rob_D]

It has been passed by nearly all of the regulators, only the FTC wants to try and fight it in court

https://en.wikipedia.org/wiki/Proposed_acquisition_of_Activision_Blizzard_by_Microsoft#Regulatory_response

 

Oh, the media/twitter seemed to make out that the CMA was the last holdout. Even the article in the OP suggests that now the CMA is out the way MS can close the deal.

 

Possibly a bad comparison, but very little gets said when Sony pays a third party studio such as Square Enix, for console exclusivity of games like Final Fantasy XVI.

I guess people got pre-conditioned back in the day when consoles had such different hardware making something cross-platform was like building a whole new game. Also, it's a single game there's nothing to stop SE from teaming up with MS for their next title. If Sony/MS full on buys the studio (which they both seem to be doing right now) then it's likely all future games made by that studio would be exclusive.

[JJonas]

CMA passed it this morning.

 

ATVI shares stopped trading last night at 7PM EST I believe.

 

Its happening

[Davit2005]

No doubt the start menu will be getting even more bloatware then along side Spotify and xBox neither of which are of interest to me personally.

[Horizontalmatt]

Personally the Bethesda buy out is a bigger hit to me, especially with them being exclusives to Xbox.

 

Thankfully starfield doesn't look amazing, but dreading the day that a new elder scrolls comes out as I will have to fork out for an Xbox/game pass