On January 18, 2022, Microsoft announced that it had entered into an agreement to acquire Activision Blizzard for $68.7 billion. The deal was met with mixed reactions from gamers and industry analysts. Some people were excited about the prospect of seeing more Activision Blizzard games on Xbox Game Pass, while others were concerned about the potential for Microsoft to become too powerful in the gaming industry.
The Acquisition has been subject to regulatory scrutiny in the United States, Europe, and the United Kingdom. In February 2, 2022, the European Commission opened an investigation into the deal. In April 1, 2022, U.S. Senators raised concerns about the acquisition, citing Activision Blizzard's history of sexual harassment and discrimination.
On July 14, 2022, the FTC requested a preliminary injunction to block the acquisition, arguing that it would harm competition in the video game industry. However, the deadline for the FTC to file a lawsuit to block the acquisition passed on July 18, 2022, and the deal is still pending regulatory approval.
On August 4, 2022, Microsoft extended the merger agreement with Activision Blizzard to October 18, 2023. The company has said that it is committed to closing the deal and that it is working with regulators to address any concerns that they may have.
The acquisition of Activision Blizzard by Microsoft is a major event in the gaming industry. It has the potential to significantly change the landscape of gaming, both for gamers and for the industry as a whole. Only time will tell what the long-term implications of the acquisition will be.
Here are some of the key milestones in the acquisition timeline:
- January 18, 2022: Microsoft announces that it has entered into an agreement to acquire Activision Blizzard for $68.7 billion.
- February 2, 2022: The European Commission opens an investigation into the acquisition.
- April 1, 2022: U.S. Senators raise concerns about the acquisition, citing Activision Blizzard's history of sexual harassment and discrimination.
- May 18, 2022: The United Kingdom's Competition and Markets Authority (CMA) opens an investigation into the acquisition.
- July 14, 2022: The FTC requests a preliminary injunction to block the acquisition, arguing that it would harm competition in the video game industry.
- July 18, 2022: The deadline for the FTC to file a lawsuit to block the acquisition passes.
- August 2, 2022: The CMA announces that it has provisionally concluded that the acquisition would be anti-competitive and is seeking remedies from Microsoft.
- August 4, 2023: Microsoft extends the merger agreement with Activision Blizzard to October 18, 2023.
What are the next steps?
The acquisition of Activision Blizzard by Microsoft is still subject to regulatory approval. The deal is expected to close in the second half of 2023.
Once the deal closes, Microsoft will integrate Activision Blizzard into its gaming division. The company has said that it plans to keep Activision Blizzard's headquarters in California, and that it will continue to operate Activision Blizzard's studios as independent entities.
It will be interesting to see how the acquisition of Activision Blizzard by Microsoft affects the gaming industry. The deal has the potential to significantly change the landscape of gaming, both for gamers and for the industry as a whole.
Additional details:
- The acquisition would make Microsoft the third-largest gaming company in the world, behind Tencent and Sony.
- Microsoft has said that it plans to keep Activision Blizzard's games available on all platforms, including PlayStation and Nintendo Switch.
- The acquisition could lead to more consolidation in the gaming industry.
- The acquisition could lead to higher prices for games.
- The acquisition could lead to more investment in innovation in the gaming industry.
- The acquisition could lead to more cross-platform play.
Only time will tell what the long-term implications of the acquisition will be. However, it is clear that the acquisition is a major event that will have a significant impact on the gaming industry.
