Microsoft Set to Complete Acquisition of Activision Blizzard for $69 Billion

According to reports, Microsoft is planning to complete its acquisition of Activision Blizzard for $69 billion, despite the Federal Trade Commission (FTC) blocking the deal in December last year on antitrust grounds. According to sources close to the technology giant, Microsoft is optimistic this week about obtaining UK approval for its acquisition. Sources say this is because in recent weeks, antitrust regulatory agencies in the UK and EU have made surprising progress in approving the merger of the two companies. The reason why these two antitrust regulatory agencies have improved their attitude towards Microsoft is that Microsoft has promised to allow competitors such as Sony and Nintendo to obtain franchise rights for its gaming masterpiece “Call of Duty” video game.

Microsoft plans to complete its acquisition of Activision Blizzard

Outline:

I. Introduction
A. Brief overview of Microsoft’s acquisition plans
B. FTC’s previous blockade
II. Microsoft’s Optimism about UK Approval
A. Recent progress in EU and UK regulatory agencies
B. Possible reasons for regulatory change in attitude
III. Call of Duty Rights Promise
A. Microsoft’s promise to allow rival companies own franchise rights to Call of Duty
B. Potential impact on the gaming industry
IV. Anticipated Effects of Acquisition
A. Advantages for Microsoft
B. Implications for competitors and consumers
V. Conclusion
A. Recap of the article’s main points
B. Final thoughts on the acquisition
VI. FAQs

Microsoft Set to Complete Acquisition of Activision Blizzard for $69 Billion

According to recent reports, technology giant Microsoft is planning to proceed with its acquisition of Activision Blizzard for a whopping $69 billion, despite it being blocked by the Federal Trade Commission on antitrust grounds around December last year. The company is reportedly optimistic about obtaining regulatory approval in the UK this week as the antitrust regulatory agencies in the UK and EU have made surprising progress in approving the merger of the two companies.
**Microsoft’s Optimism about UK Approval**
Microsoft appears to be very encouraged by the sudden change of heart displayed by antitrust regulatory agencies in the EU and UK. It is noteworthy that these agencies are now showing a more favorable attitude towards Microsoft. This change of attitude comes after the company has promised to allow competitors such as Sony and Nintendo obtain also franchise rights to its blooming gaming masterpiece, “Call of Duty” video game.
**Call of Duty Rights Promise**
Microsoft’s promise to allow competitors to obtain franchise rights to Call of Duty, its biggest video game franchise, has demonstrated good faith to regulatory agencies. This move is poised to change the gaming industry as we know it, especially for rival gaming companies. By making this promise, Microsoft removes a significant portion of its dominant market share on Call of Duty’s franchise rights, thus creating more opportunities for competitors to leverage their own gaming franchises.
**Anticipated Effects of Acquisition**
If Microsoft’s acquisition of Activision Blizzard is ultimately successful, it would have several benefits for the company. It would give a considerable boost to Microsoft’s gaming division, which has seen extensive growth over the last few years with the launch of Xbox Series X and S. Additionally, it would expand Microsoft’s intellectual property (IP) portfolio and provide access to Activision Blizzard’s extensive range of franchises, which could be incorporated into future gaming systems.
On the flip side, competitors and consumers may bear the brunt of the acquisition. The potential for reduced competition could lead to reduced innovation, higher prices for consumers, and reduced opportunities for smaller developers in the gaming industry.

Conclusion

In conclusion, Microsoft’s acquisition of Activision Blizzard is poised to change the competitive landscape of the gaming industry. The company’s optimism about obtaining regulatory approval, coupled with the promise to allow competitors obtain Call of Duty’s franchise rights, has increased Microsoft’s chances of obtaining approval for the acquisition. While the acquisition is beneficial to Microsoft, the potential impact on competitors and consumers cannot be ignored.

FAQs

1. What is the acquisition amount agreed on by Microsoft and Activision Blizzard?
The acquisition is set for $69 billion, an amount blocked initially by the Federal Trade Commission on antitrust grounds.
2. When is Microsoft’s acquisition of Activision Blizzard expected to be completed?
Although regulatory agencies in the UK and EU have made progress in approving the merger, the acquisition’s completion date is yet to be determined.
3. Will the acquisition hurt competitor gaming companies?
The acquisition could potentially reduce opportunities for smaller developers and lead to reduced innovation in the industry. However, Microsoft’s promise to allow competitors obtain Call of Duty’s franchise rights could alleviate some of the negative impacts.