It's Official: Microsoft Has Bought Activision Blizzard for $69 Billion - IGN (2024)

UPDATE: Microsoft has announced its $69 billion purchase of Activision Blizzard, bringing Call of Duty and more into the Xbox fold.

In a post on Xbox Wire, Xbox boss Phil Spencer said work has now begun bringing Activision Blizzard games to Game Pass, although he stopped short of namechecking any titles. "Today we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms. We’ll share more about when you can expect to play in the coming months. We know you’re excited – and we are too."

Spencer also delivered a message to existing players of Activision Blizzard games, suggesting multiplatform support will continue. "For the millions of fans who love Activision, Blizzard, and King games, we want you to know that today is a good day to play," he said. "You are the heart and soul of these franchises, and we are honored to have you as part of our community. Whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you are welcome here – and will remain welcome, even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win. We believe our news today will unlock a world of possibilities for more ways to play. Thank you for the ongoing support. We have so much more to come in the months ahead – I’m excited for the future and cannot wait to share it with you."

Microsoft published a trailer, below, announcing the deal.

ORIGINAL STORY: Microsoft’s long-running pursuit of Activision Blizzard looks set to end today after the UK finally cleared the deal and stock in the Call of Duty maker was halted.

In April, the UK’s Competition and Markets Authority (CMA) blocked the acquisition, citing competition concerns around cloud gaming. Since then, Microsoft has defeated the U.S.’s Federal Trade Commission (FTC) in court, obtained approval from key regulator the European Commission, and secured an agreement with console rival Sony for the provision of Activision games on PlayStation for a decade.

In August, Microsoft submitted a new Activision Blizzard deal for review to the CMA that involves selling off Activision’s cloud gaming rights to Assassin's Creed maker Ubisoft, which would be free to port cloud versions of Activision Blizzard games to any platform.

Now, the CMA has cleared the tweaked $69 billion deal — the largest in video game history — and paved the way for Microsoft to buy Activision. The CMA framed its decision as a victory for the preservation of competitive prices and better services in cloud gaming. “In August this year Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights,” the CMA said. “This new deal will put the cloud streaming rights (outside the EEA) for all of Activision’s PC and console content produced over the next 15 years in the hands of a strong and independent competitor with ambitious plans to offer new ways of accessing that content.

The 13 Biggest Franchises Microsoft Will Own After the Xbox and Activision Deal

“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers. It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services. It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.”

Brad Smith, Vice Chair and President, Microsoft, said: “We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.

Meanwhile, trading in shares in Activision Blizzard were halted alongside the alert “news pending”, suggesting the deal is set to close imminently.

Activision Blizzard boss Bobby Kotick emailed staff to hail the news. "We now have all regulatory approvals necessary to close and we look forward to bringing joy and connection to even more players around the world," Kotick said.

"Our board chair Brian Kelly and I are incredibly proud of all of you and your accomplishments over the last four decades. We’re excited for our next chapter together with Microsoft and the endless possibilities it creates for you and for our players."

Microsoft Acquires Activision Blizzard: The Story So Far

When the deal closes, Microsoft will own the likes of Call of Duty, World of Warcraft, and Candy Crush. Xbox is expected to add many of Activision Blizzard’s games into its subscription service, Game Pass, although Call of Duty Modern Warfare 3 and Diablo 4 will be held back until next year.

However, the FTC is soldiering on with its attempt to unravel the deal, despite losing its high-profile court case in the summer. The FTC is waiting for a decision on its trial verdict appeal before moving forward with its own in-house trial, although both will come after Microsoft seals the deal.

And in a new development, the FTC filed a submission to re-open discovery in order to gain more information on Microsoft’s cloud gaming divestiture deal with Ubisoft, and its deal with Sony to ensure Call of Duty remains on PlayStation consoles.

"We remain focused on the federal appeal process despite Microsoft and Activision closing their deal in advance of a scheduled December appeals court hearing," an FTC spokesperson told IGN in an email. "Microsoft and Activision's new agreement with Ubisoft presents a whole new facet to the merger that will affect American consumers, which the FTC will assess as part of its ongoing administrative proceeding. The FTC continues to believe this deal is a threat to competition."

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.

It's Official: Microsoft Has Bought Activision Blizzard for $69 Billion - IGN (2024)

FAQs

Has Microsoft officially bought Activision Blizzard? ›

Microsoft has successfully persuaded regulators around the world to clear its $68.7 billion acquisition of Activision Blizzard — the biggest deal of its kind the gaming industry has ever seen — and has completed the deal.

How much did MS pay for Activision Blizzard? ›

Microsoft has finalized its $68.7 billion deal to acquire Activision Blizzard, the publisher of Call of Duty, World of Warcraft, and Diablo.

How did Sony react to Microsoft buying Activision? ›

Sony also took note of Microsoft's attempt to build a mobile gaming business with King games in its portfolio. Sony acknowledges the “incredible strategic value” of Activision games especially in the live service arena, and specifically mentions the threat of losing Call of Duty to Microsoft.

Did Microsoft overpay for Activision? ›

Unless Microsoft can squeeze more growth out of this business, it might have overpaid. When Microsoft originally announced the deal in January 2022, it spent as much time talking about the opportunity to expand into mobile gaming -- a $92 billion market -- as it did about cloud gaming opportunities.

Will the Microsoft Activision deal be approved? ›

Activision Blizzard announced the deal was completed in a securities filing on Friday, after the deal was approved earlier by the U.K.'s Competition and Markets Authority, which said Microsoft addressed the agency's concern about competition in the emerging cloud gaming space.

Is the Xbox Activision deal final? ›

The companies agreed to extend the close of the acquisition until October 18, 2023, as to resolve the CMA issue. Following the CMA's approval of the revised terms on October 13, 2023, Microsoft completed the acquisition of Activision Blizzard the same day.

Will the ftc win against Microsoft? ›

Microsoft wins FTC fight to buy Activision Blizzard

A California judge is allowing Microsoft to close its acquisition of Activision Blizzard after five days of grueling testimony.

Who owns Blizzard now? ›

In October 2023, Microsoft acquired parent company Activision Blizzard, maintaining that the company will continue to operate as a separate business. While part of the larger Microsoft Gaming division, Blizzard Entertainment retains its function as the publisher of games developed by their studios.

Did Xbox buy Call of Duty? ›

Microsoft has completed its $69bn (£56bn) takeover of Call of Duty maker Activision Blizzard in the gaming industry's biggest ever deal. It comes as Microsoft, which owns the Xbox gaming console, was given the green light for the global deal after UK regulators approved it.

What are the consequences of Microsoft buying Activision? ›

The deal was also criticized as it was believed to lead to “higher prices, fewer choices, or less innovation for UK gamers.” The main concern was cloud-based gaming, with the CMA believing that Microsoft's influence would be too great.

Who is stopping Microsoft from buying Activision? ›

The FTC filed a lawsuit aimed at stopping the deal in December 2022, arguing that Microsoft would use Activision's popular games to suppress competition to its Xbox consoles and dominate fast-growing subscription and cloud gaming businesses.

Why is Microsoft buying Activision such a big deal? ›

This was at the height of the metaverse trend and would be the largest gaming industry deal in history. Microsoft is said to have wanted to acquire Activision Blizzard to further improve its presence in the gaming industry, and the metaverse, and to consolidate itself as the de facto king of cloud gaming.

Why is Microsoft buying every game company? ›

Microsoft says the move would make it the third-largest gaming company by revenue, following Tencent and Sony. The company, already a giant in the market, would gain even more leverage over how games are made and distributed.

Did the Microsoft Activision deal fall through? ›

Microsoft closed its $69 billion deal for Activision Blizzard after CMA cleared the acquisition, saying the restructured deal substantially addressed its earlier concerns.

Is Microsoft paying cash for Activision? ›

Microsoft valued the Activision deal at $68.7 billion when it announced the acquisition in early 2022, “inclusive of Activision Blizzard's net cash,” though Microsoft agreed to pay $95 in cash for each share of the game-maker, closer to $75 billion.

Did Microsoft buy Activision in cash? ›

Microsoft valued the Activision deal at $68.7 billion when it announced the acquisition in early 2022, “inclusive of Activision Blizzard's net cash,” though Microsoft agreed to pay $95 in cash for each share of the game-maker, closer to $75 billion.

Did Microsoft buy CoD servers? ›

Microsoft acquired "Call of Duty" through its buyout of Activision Blizzard in a $69 billion deal, which closed late last year.

Is Call of Duty going to be Xbox exclusive? ›

If Microsoft had simply decided to make CoD a console exclusive on Xbox, it would've pulled roughly 7 million players away from Sony's PlayStation 4 and 5 systems. Instead, the reported plan is to let the game stay cross-platform, but to use it to drive Game Pass subscriptions.

Does Microsoft own World of Warcraft? ›

Perhaps unsurprisingly, some fans were quick to point the finger at Warcraft's new owners, Microsoft. The tech giant bought Activision Blizzard last year for $69bn (£56bn) in the biggest acquisition in gaming history.

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