Microsoft Closes $69 Billion Activision Blizzard Deal After Nearly 2-Year Tangle With Regulators
After a bumpy 21 months of clearing regulatory hurdles, Microsoft has completed its $69 billion acquisition of Activision Blizzard, a transaction that creates the world’s third-largest video game company with titles like “Call of Duty” and “World of Warcraft.”
The deal’s close was made public Friday in a federal filing and led by Activision CEO Bobby Kotick and Microsoft CEO Satya Nadella. The sale means Microsoft, maker of the Xbox gaming platform, now owns Activision titles including the “Diablo” and “Tony Hawk” franchises.
The largest purchase in Microsoft’s history still leaves Tencent, whose assets include the “League of Legends” franchise, and Sony as the two largest gaming companies in terms of revenue.
Both British and U.S. regulators offered stiff resistance to the potential sale when it was announced, and the U.K. competition authority blocked the deal outright this spring.
After Microsoft worked to allay competition worries by agreeing to a restructuring that included some Activision cloud-gaming rights going to the French gaming giant Ubisoft, the last hurdle was removed. The FTC tried to throw up its own final block earlier this year, but was denied by a federal judge.
Those potential deal-killers pushed the contract past its July expiration date, but both sides agreed to extend the date for the merger to close. Activision will now report into Microsoft’s gaming division, which is expected to effect sweeping restructuring of the combined unit.
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