Microsoft closes $69 billion Activision deal after Britain's nod
By Paul Sandle, Yadarisa Shabong and Aditya Soni
LONDON (Reuters) — Xbox maker Microsoft (NASDAQ:MSFT) closed its $69 billion deal for Activision Blizzard (NASDAQ:ATVI) on Friday, swelling its heft in the video-gaming market with best-selling titles including «Call of Duty» to better compete with industry leader Sony (NYSE:SONY).
Originally unveiled in January 2022, the biggest deal in the gaming industry cleared its final big hurdle — an approval from Britain — earlier in the day after Microsoft agreed to sell streaming rights for Activision's games to allay competition concerns.
The completion is a major win for the U.S. tech firm in its push to attract more people to its Xbox consoles and Game Pass subscription service. Microsoft's gaming revenue trails that of Sony, whose PlayStation consoles outsell the Xbox.
«Today is a good day to play,» Microsoft Gaming CEO Phil Spencer said in a post on the X social media platform, formerly known as Twitter. He will oversee the Activision business, with the video-game publisher's CEO Bobby Kotick staying on until end-2023.
Spencer has touted the purchase as a way for Microsoft to break into the more than $90-billion market for mobile games.
Activision makes popular mobile titles including «Candy Crush Saga» and «Call of Duty Mobile» — games that were excluded from the cloud streaming deal Microsoft signed with France's Ubisoft Entertainment to secure approval from Britain.
«Microsoft instantly has more than $3 billion of mobile revenues,» said Wedbush Securities analyst Michael Pachter.
«The big benefit is that Microsoft has a vision that they are going to deliver games through a subscription, and they need more content to give subscribers. So, this is a big step toward having
Read more on investing.com
