Microsoft Seeks Clearance To Acquire Activision Blizzard

The Commerce Commission has received a clearance application in relation to the proposed acquisition by Microsoft Corporation (Microsoft), via a wholly owned subsidiary, of Activision Blizzard Inc (Activision). Both parties are developers, publishers and distributors of video games for PC, gaming consoles and mobile platforms.

Microsoft is a global technology company headquartered in the USA. In relation to video games, in New Zealand, Microsoft:

• distributes its own video game titles through its online distribution platforms the Microsoft Store, the Xbox Store and Bethesda.net;
• distributes video games developed by other software companies (such as Activision Blizzard) through its online platforms;
• offers multi-title gaming subscriptions through Xbox Live and Xbox Game Pass; and
• produces and sells the Xbox range of video-game consoles, as well as personal computer (PC) hardware and peripherals such as mice and keyboards.

Microsoft’s games include the Minecraft, Forza, Elder Scrolls and Halo titles.

Activision Blizzard is also headquartered in the US, and develops, publishes and distributes video games. It produces games via its Activision, Blizzard and King business units.

Activision Blizzard’s games include the Call of Duty, World of Warcraft, Overwatch and Candy Crush titles.

A public version of the clearance application will be available shortly on the Commission’s case register.

Background

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.

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