In an unexpected change of events Microsoft's proposed acquisition of gaming giant Activision Blizzard appears to have avoided the need for European Commission approval. According to anonymous Bloomberg sources, the European Union has decided not to further investigate the updated transaction.
This development follows a rocky period for the acquisition, which was initially stopped by the UK's Competition and Markets Authority (CMA) in April. The CMA has expressed concern about the merger's possible negative impact on the developing cloud gaming business.
To put to rest these fears Microsoft the creator of the Xbox game platform, made a big concession. The tech titan agreed to give up Ubisoft's cloud gaming rights outside the European Economic Area for all Activision Blizzard titles released over the next 15 years.
The CMA gave the acquisition a provisional green light last month, signalling that it was inclined to approve it. A final decision approving the merger is expected within the next week, marking a crucial step towards its completion.
Nonetheless, Microsoft is not fully out of the woods. The transaction is dogged by legal challenges in the United States. The Federal Trade Commission (FTC) has stated its intention to seek an internal challenge to the transaction, even if this occurs after the acquisition has been completed.
Despite these legal challenges, Activision Blizzard one of the gaming industry's most recognised companies has stated that if the acquisition goes through as planned it expects to integrate its titles into Microsoft's Game Pass subscription programme in 2024. This collaboration has the potential to change the gaming landscape by providing a plethora of popular titles to users of Microsoft's gaming service.
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