Microsoft's Acquisition of Activision Blizzard Gains Momentum with Ukraine's Approval

  • 30-05-2023 |
  • Tyler Anderson

The proposed acquisition of Activision Blizzard by Microsoft has received the green light from Ukraine's Antimonopoly Committee, bolstering the company's chances of completing the $69 billion deal. This marks yet another victory for the tech giant as it seeks to expand its gaming portfolio, despite facing resistance in some markets.

Regulators from several countries, including Saudi Arabia, Brazil, Serbia, Chile, Japan, and South Africa, have also approved the controversial acquisition. With these countries publicly announcing their support for the deal, the chances of it reaching fruition are undoubtedly improving. The Antimonopoly Committee of Ukraine stated in its release that the transaction would not result in a significant reduction of competition in relevant markets.

However, the deal still faces opposition in the UK. The Competition and Markets Authority has recently blocked the acquisition globally, citing concerns about its potential impact on the fast-growing cloud gaming market. The regulator fears that the deal could lead to decreased innovation and limited choice for gamers in the coming years.

Both Microsoft and Activision Blizzard have expressed their disappointment in the UK ruling, with plans to appeal the decision. Microsoft stated that the move is "bad for Britain," while Activision Blizzard called it "irrational." As cloud gaming services are not available in Ukraine, the country's competition watchdog did not consider this aspect during its evaluation.

In a bid to alleviate regulatory concerns, Microsoft announced a game distribution agreement with Spanish cloud gaming platform Nware. The 10-year agreement involves streaming Xbox PC games and potentially Activision Blizzard titles if the acquisition closes. This strategic partnership highlights Microsoft's efforts to address the issues raised by regulators and pave the way for the successful completion of the deal.

In conclusion, the approval of Microsoft's acquisition of Activision Blizzard by Ukraine's competition regulator is a significant step forward for the tech giant. However, the ongoing opposition in the UK highlights the challenges the company must still overcome. Microsoft's recent partnership with Nware indicates its willingness and commitment to addressing these concerns, setting the stage for an exciting future in the gaming industry.