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European Union regulators approve Microsoft's _____ billion acquisition of Activision Blizzard.
A)
$50 Billion
B)
$54 Billion
C)
$63 Billion
D)
$69 Billion

Correct Answer :   $69 Billion


The European Union on Monday (15th May 2023) approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the US tech company’s remedies to boost competition in cloud gaming.

* The blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

* The deal, sweetened by Microsoft's promises to free up licensing conditions for cloud gaming, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers," said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

* The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

* Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

* Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

* The European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

* The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

* The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and any cloud gaming platforms to stream its titles without paying any royalties for 10 years.

* Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

* The EU’s decision could enhance Microsoft’s chances as it faces down U.S. regulators. The Federal Trade Commission is taking the company to court to block the deal, with a trial before the FTC’s in-house judge set to begin Aug. 2..

Source : Mint

Published On : May 16, 2023
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