Microsoft is acquiring Activision Blizzard in shocking deal

By DeAngelo Epps January 18, 2022

After months of controversial news surrounding Activision Blizzard, Microsoft has stepped in and acquired the company. As announced in an official press release from Xbox chief Phil Spencer, Microsoft plans to buy the company behind franchises like World of Warcraft, Diablo, Overwatch, Call of Duty, and more.

“This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse,” Microsoft states in the release.

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The deal is rumored to be valued at $68.7 billion. If accurate, that would make it the largest acquisition in video game history by a significant margin. The record was just set by Take Two when it announced intentions to acquire Zynga for $12.7 billion.

Microsoft already made its immediate plans concerning Activision Blizzard apparent, confirming that it will offer as many new and old Activision Blizzard games as it can within Xbox Game Pass and PC Game Pass. It also said that the acquisition of Activision Blizzard’s franchises will accelerate its plans for Cloud Gaming and will continue to be able to be enjoyed on a variety of platforms.

This is Microsoft’s second big acquisition after the company bought Bethesda in 2021. It also makes Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony.

In terms of the controversial storm that Microsoft has to deal with over this acquisition, the company states: “We deeply value individual studio cultures. We also believe that creative success and autonomy go hand in hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.”

Microsoft also confirms that the acquisition isn’t quite finished just yet. Until this transaction closes at an undisclosed time, Activision Blizzard and Microsoft Gaming will continue to operate independently.

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De'Angelo Epps is a gaming writer passionate about the culture, communities, and industry surrounding gaming. His work ranges…

Gaming

Microsoft’s Activision Blizzard acquisition blocked in the U.K. over cloud concerns

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The U.K.'s Competition and Markets Authority (CMA) has blocked Microsoft's attempt to acquire Activision Blizzard because of its potential negative impact on cloud gaming.
Since January 2022, Xbox parent company Microsoft has been trying to acquire Activision Blizzard, the video game publisher behind franchises like Call of Duty, Diablo, Warcraft, and Overwatch. The companies have run into lots of regulatory hurdles, though, especially from the CMA and FTC, the latter of which is currently suing Microsoft. While it seemed like the CMA was inching towards approving the deal, the U.K. regulator ultimately decided to block it due to its potential impact on the fledgling cloud gaming market.

"Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service," a press release from the CMA explains. " Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities."
Over the past couple of months, Microsoft has attempted to ease these cloud gaming concerns by making deals with companies like Nvidia and EE. The CMA did not think these remedies were enough, though, saying that Microsoft's efforts didn't account for enough potential business models, cloud gaming services that don't use Windows, and how the deal could take "the dynamism and creativity of competition" away from the U.K.'s cloud gaming market.
Obviously, Activision Blizzard and Microsoft aren't too happy about this decision. Activision Blizzard directly attacks the CMA in a statement provided to Digital Trends, saying that the "report contradicts the ambitions of the U.K. to become an attractive country to build technology businesses," before calling the country's economic prospects "dire" and threatening that it will reconsider its plans for growth in that country.
Microsoft's statement from Vice Chair and President Brad Smith is a bit more measured, saying that Microsoft is "fully committed to this acquisition and will appeal." Citing the deals the company has already made to bring Call of Duty to more platforms, Smith says that the decision shows "a flawed understanding of this market and the way the relevant cloud technology actually works."
https://twitter.com/BradSmi/status/1651182266406584320
Microsoft has a lot of work cut out for itself if it still wants to force this deal through after pressure from the FTC and CMA. As the appeals process could take up to nine months or more, it seems unlikely that the acquisition meets its original June 2023 deadline; it's probable we'll be following this fight to acquire Activision Blizzard for the rest of the year.

Gaming

7 excellent game deals you can’t miss during Steam’s Xbox publisher sale

Raz runs on a colorful stage in Psychonauts 2.

Like a lot of modern gamers, I'm an Xbox Game Pass subscriber. I get a lot out of the subscription service, using it to play everything from Microsoft's first-party exclusives to smaller indie sensations like Citizen Sleeper. There's just one downside to that: I don't own any games I play on it. If Microsoft decided to pull a game like Forza Horizon 5 one day, I'd have to shell out if I ever wanted to continue my progress. It's a peculiar side-effect to the gaming subscription era, one that still makes me eager to buy any Game Pass title I love.

If you're in the same boat as me, Steam can help. The PC storefront is currently running an Xbox Publisher Sale, which features major discounts on some of Microsoft's biggest titles. From now until May 4, you'll find heavy hitters like Halo Infinite and Gears 5 discounted. What's particularly eye-catching is that tons of excellent games are currently on sale for $20 or less -- with some of Xbox's best exclusives selling for as low as $5. If you're looking to buy some of your favorite Game Pass titles, here are seven deals you should know about (you can grab all of them for just over $86).
Psychonauts 2 -- $20.39

Gaming

Microsoft pledges to bring Xbox PC games to Nvidia GeForce Now

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Microsoft has announced a 10-year partnership with Nvidia aimed at bringing Xbox PC games to its cloud gaming service competitor Nvidia GeForce Now as part of its ongoing efforts to win over companies skeptical of its potebtial Activision Blizzard acquisition.
This means that players can use Nvidia GeForce Now to play the Steam, Epic Games Store, or Windows versions of titles like Halo Infinite, Redfall, and eventually, Call of Duty through the cloud on GeForce Now. Third-party publishers with games on the Windows Store can also now grant streaming rights to Nvidia. This announcement came during a European Commission hearing where Microsoft tried to convince regulators that its impending acquisition should bne allowed.
Microsoft has been under a lot of regulatory scrutiny even since it announced its intent to acquire Activision Blizzard in January 2022. It's trying to win over industry peers with deals like this one with Nvidia. This week, the Communications Workers of America voiced its approval of the deal, and Microsoft has signed a binding agreement to bring Call of Duty to Nintendo platforms as well. Previously, Nvidia had raised concerns about Microsoft's Activision Blizzard acquisition, but the press release announcing this agreement states that the deal "resolves Nvidia's concerns," and that Nvidia now gives "full support for regulatory approval of the acquisition."
Regulatory bodies in the U.S., U.K., and Europe are worried that Microsoft acquiring Activision Blizzard will hurt the game industry and sabotage Microsoft's competitors in both console and cloud gaming. Nvidia GeForce Now is seen as one of the biggest competitors to Xbox Game Pass Ultimate's cloud service offerings, which makes it surprising that it reached an agreement with Nvidia. However, this deal also demonstrates how Microsoft is willing to make concessions so that its acquisition of Activision Blizzard is approved.