Like it or loathe it, this acquisition is happening (Picture: Microsoft)

The CMA may have approved the Xbox Activision deal, but it warns other companies not to try and repeat Microsoft’s tactics.

Just as everyone expected, UK regulator the Competition and Markets Authority (CMA) has formally approved Microsoft’s acquisition of Activision Blizzard .

Admittedly, the deal still hasn’t been finalised yet but now there’s nothing stopping it before Microsoft and Activision’s deadline of October 18, which is this coming Wednesday.

It’s easy to forget, considering it feels like this debacle has lasted an eternity, but this is a historic moment in not just gaming history but Microsoft’s too. At $69 billion (roughly £56.5 billion), this is both the biggest acquisition ever in gaming and the biggest Microsoft has ever made.

As a reminder, the CMA was the last real roadblock keeping the deal from happening, as it had initially blocked it due to concerns of Microsoft gaining too much control in the cloud gaming space.

Microsoft then offered a revised proposal that involved handing the cloud streaming rights for Activision Blizzard games over to Ubisoft , which appears to have been enough to win the CMA over.

‘With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market,’ says CMA chief executive Sarah Cardell.

‘As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.’

That said, Cardell has strong words for Microsoft regarding how its handled the entire affair, saying, ‘Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA.

‘Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money.’

Call Of Duty: Modern Warfare 3 – don’t expect Call Of Duty on Game Pass immediately though (Picture: Activision)

Cardell also shuts down any insinuations that the CMA caved due to outside pressure from politicians , who weren’t thrilled about the CMA’s initial rejection of Microsoft’s deal.

‘The CMA is resolute in its determination to prevent mergers that harm competition and deliver bad outcomes for consumers and businesses. We take our decisions free from political influence and we won’t be swayed by corporate lobbying,’ adds Cardell.

Regardless, Microsoft is obviously thrilled with the result. A statement from the company’s vice chair and president Brad Smith reads, ‘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.’

Admittedly, US regulator the Federal Trade Commission still intends on fighting against the acquisition, but it’s extremely unlikely, if not outright impossible, that it can do anything to prevent it before the deal is finalised.

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While Microsoft and diehard fans will treat this news as a victory, what’s really important is what comes next. Microsoft will soon be $69 billion out of pocket and will need to make that money back through Activision Blizzard in a timely manner, to justify buying it in the first place (just think how quickly Disney started spamming out Star Wars films once it bought Lucasfilm for a mere $4 billion).

In fact, Microsoft could potentially be losing even more money if the US’s Internal Revenue Service (IRS) gets its way. As reported by Forbes , the IRS says Microsoft owes nearly $29 billion (around £24 billion) in back taxes. Unsurprisingly, Microsoft intends to contest this in the court, rather than just pay the money.

Good job Microsoft, you got what you wanted… now how are you going to make back that $69 billion? (Picture: Activision)

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