On January 18, 2022, the European Union (EU) approved Microsoft’s acquisition of Activision Blizzard, a major player in the video game industry. The deal, which is worth $69 billion, has been in the works since late 2021 and has been met with mixed reactions from industry experts and gamers alike.
The EU’s approval of the acquisition is a significant step forward for Microsoft, as it brings them one step closer to becoming a dominant force in the gaming industry. Activision Blizzard is the parent company of popular gaming franchises such as Call of Duty, World of Warcraft, and Candy Crush, among others. By acquiring Activision Blizzard, Microsoft will have access to a vast library of popular games and intellectual property that they can leverage to grow their gaming business.
However, despite the EU’s approval, the transaction remains uncertain. The deal still needs to be approved by other regulatory bodies, including the US Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS). These bodies will need to review the deal to ensure that it does not violate any antitrust laws or national security concerns.
The acquisition has also faced opposition from some industry experts and gamers who are concerned about the potential impact it could have on the gaming industry. Critics argue that Microsoft’s acquisition of Activision Blizzard could lead to a lack of competition in the industry, which could ultimately harm consumers. They also worry that Microsoft’s ownership of popular gaming franchises could lead to exclusivity deals that limit gamers’ choices.
Despite these concerns, Microsoft has stated that they are committed to maintaining a competitive gaming industry and will continue to support cross-platform play. They have also stated that they plan to invest heavily in the gaming industry, including expanding their Xbox Game Pass subscription service.
In conclusion, while the EU’s approval of Microsoft’s acquisition of Activision Blizzard is a significant step forward for the deal, it remains uncertain. The deal still needs to be approved by other regulatory bodies, and it has faced opposition from some industry experts and gamers. Only time will tell how the acquisition will ultimately impact the gaming industry and consumers.
