Breaking News: Microsoft Successfully Completes Activision Blizzard Acquisition After Regulatory Approval

Microsoft has successfully completed its $69 billion acquisition of video game publisher Activision Blizzard, according to a regulatory filing by Microsoft on Friday. This marks the largest deal in Microsoft’s 48-year history and comes after the company overcame concerns from regulators in the U.K. and Europe, as well as a favorable ruling from a U.S. district judge.

Earlier on Friday, the U.K.’s Competition and Markets Authority approved the deal, clearing the way for its completion.

The acquisition, which was announced in January 2022, grants Microsoft ownership of a significant portfolio of video game franchises, including popular titles such as Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater, and Warcraft. In its most recent fiscal year, Activision Blizzard generated $7.5 billion in revenue, a small fraction of Microsoft’s $212 billion in sales.

“Today we begin the process of bringing beloved Activision, Blizzard, and King franchises to Game Pass and other platforms,” stated Phil Spencer, CEO of Microsoft Gaming, in a blog post. “We will provide more details on when players can expect to experience these games in the coming months.”

Activision Blizzard CEO Bobby Kotick will remain in his position until the end of the year.

Under the leadership of CEO Satya Nadella, who assumed the role in 2014, Microsoft aims to diversify its business beyond operating systems and productivity software. Activision Blizzard has been both a partner and competitor to Microsoft, as one of the few major companies that releases high-budget, popular games.

The acquisition faced regulatory challenges, resulting in delays. Originally, Microsoft anticipated closing the deal by the end of June 2023, but in July, an extension was agreed upon, setting the new deadline for October 18. However, the Federal Trade Commission (FTC) in the U.S., the European Commission, and the U.K.’s Competition and Markets Authority all expressed concerns.

Microsoft made concessions that satisfied European regulators, including providing free licenses for European consumers to stream their Activision Blizzard games and granting free licenses to streaming providers for European gamers to access the games through the cloud. Additionally, Microsoft entered into agreements with console rivals Nintendo and Sony, ensuring their access to Call of Duty games for the next decade. Similar arrangements were made with various cloud-gaming providers.

The FTC attempted to halt the deal with a preliminary injunction, but a judge ruled in favor of Microsoft and Activision after five days of hearings. The FTC then took the case to the U.S. Appeals Court for the 9th Circuit, which denied a motion to temporarily block the deal.

Although the deal has been completed, the FTC still has concerns. “We remain focused on the federal appeal process despite Microsoft and Activision closing their deal in advance of a scheduled December appeals court hearing,” stated FTC spokesperson Victoria Graham. “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.”

Activision ended the second quarter with $587 million in net income on $2.2 billion in revenue, a 34% increase compared to the previous year.

WATCH: Microsoft deal with Activision Blizzard set to clear final hurdle

Correction: Microsoft agreed to acquire Activision Blizzard more than 20 months ago. An earlier version of this article misstated the time frame.