#ICYMI: Microsoft completes USD 69-B deal (around PHP 3.9-T) to buy Call of Duty maker

Microsoft has closed its billion-dollar deal to take over Activision Blizzard, the company behind Call of Duty.

Photo from Activision

The gaming industry's biggest deal

BBC said in a report that the completion of the USD 69-billion deal (around PHP 3.9 trillion) comes after Microsoft was given the go signal for it. The Competition and Markets Authority (CMA) said its concerns on the original deal had been addressed.

For Microsoft's Phil Spencer, taking over Activision Blizzard was "incredible."

Activision Blizzard CEO Bobby Kotick has announced in a letter that he would step down at the end of 2023. He also expressed commitment to help in the transition.

Regarding concerns from competitors like Sony and regulators, Spencer reassured gamers that everybody is welcome.

Because when everyone plays, we all win. We believe our news today will unlock a world of possibilities for more ways to play, he said in a statement.

Under the deal, Microsoft gave the rights to distribute Activision Blizzard's games on consoles and PCs to French video game publisher Ubisoft.

However, Microsoft will now control games such as Call of Duty, World of Warcraft, and Candy Crush.

The CMA said the latest version of the deal would "preserve competitive prices" in the gaming industry and provide more choice and better services. On the other hand, the watchdog also criticized Microsoft’s conduct during the almost two-year battle.

Microsoft President Brad Smith expressed the company's gratitude for CMA's "thorough review and decision."

Microsoft is paying cash for Activision at a premium price of USD 95 per share.

Under the agreement, Microsoft will also transfer the rights to stream Activision games from the cloud to Ubisoft for 15 years outside the European Economic Area (EEA). This includes EU countries as well as Iceland, Liechtenstein, and Norway.

After 15 years, Ubisoft will no longer hold the cloud gaming rights for Activision's content.

Microsoft is hopeful the takeover will boost demand for its Xbox console and enable the tech firm to add more titles to its Xbox Game Pass service.

The deal also means Microsoft will own the Activision studio for mobile games, with hopes of expanding on the successes of games like Candy Crush.

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Via: BBC