Microsoft completed its nearly $69 billion Activision-Blizzard acquisition following approval from U.K. regulators, over 18 months after first announcing the deal. The news comes as the U.K. Competition and Markets Authority reversed its stance on the acquisition’s anti-competitive nature and cleared the way for the deal to close.
The European Union approved the deal with little hesitation, but the CMA originally blocked the deal over concerns about dampening innovation in cloud gaming. The U.S. Federal Trade Commission sued to stop the deal and the potential negative effects the buyout might have on innovation in the games space before approving it after weeks of hearings.
CEO Bobby Kotick will remain in his position until the start of 2024 and report to Phil Spencer, after which Kotick will depart with a roughly $400 million payout from the deal.
Kotick remained company CEO following calls for his removal after allegations surfaced that he covered up evidence of sexual harassment at the company, and he reportedly led union-busting efforts in 2021 as Activision Blizzard employees organized a workers’ alliance.
Xbox head Phil Spencer told staff in an internal memo that Xbox management would share plans about integrating Activision Blizzard games into Xbox Game Pass. Meanwhile, Spencer will visit Activision Blizzard campuses in the coming weeks.
“Today, we officially welcome Activision Blizzard and their teams to Xbox,” Spencer said in a post on Xbox Wire. “They are the publishers of some of the most played and most beloved franchises in gaming history across console, PC and mobile. From Pitfall to Call of Duty, World of Warcraft to Overwatch, Candy Crush Saga to Farm Heroes Saga, their studios have pushed the boundaries of gaming for players around the world.”
“I’ve long admired the work of Activision, Blizzard, and King, and the impact they’ve had on gaming, entertainment, and pop culture.”
The Communication Workers of America published a statement saying they believe the deal will benefit workers, thanks to Microsoft’s neutral stance on labor.
“Microsoft President Brad Smith has said that he wants to make it ‘simpler, not more difficult’ for employees to choose whether to join a union, and the company’s actions show that they mean it,” the CWA said on their website for Activision Blizzard employees. “Microsoft has a legally binding agreement with CWA for a fair, streamlined process for union representation. Now is the time to join together at Microsoft/Activision Blizzard!”
Written by Josh Broadwell on behalf of GLHF
