It’s Microsoft’s biggest deal in its 48-year history, which will allow the company to expand its position in the video game market and better compete with market leader Sony. Microsoft has allayed competition concerns from European regulators and won a favorable ruling from a US court. The CNBC server informs about it.
The deal was blocked in April by Britain’s Competition and Markets Authority (CMA), which said the US computer giant could gain control of the emerging cloud gaming market. But the authority approved the takeover today because the revised deal substantially addressed its earlier concerns.
Microsoft CEO Satya Nadella, who took over in 2014, is trying to diversify the company’s business outside of its core areas, such as operating systems and enterprise software. Activision is both a partner and a competitor for Microsoft. It is one of the few major companies that publishes popular games that can cost hundreds of millions of dollars to produce.
The deal between Microsoft and Activision was the biggest test of the CMA’s global power in the fight against tech giants since Britain left the European Union, writes CNBC. The U.S. Federal Trade Commission was also previously against it, but after it failed to stop the deal, the CMA was left alone.
The merger of the two companies is the largest deal in the gaming industry and was announced last January. The acquisition will combine Microsoft’s strength in the console market with Activision’s gaming titles such as Call of Duty, World of Warcraft and Candy Crush and is expected to accelerate the growth of Microsoft’s gaming division. The transaction makes Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony.
2023-10-13 13:20:00
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