Microsoft's Ambitious Plans for Activision Blizzard Acquisition

Politics, News Sept. 20, 2023, 6:11 a.m.

Microsofts pending $70 billion acquisition of Activision Blizzard may introduce advertising into free-to-play PC and mobile games, including Call of Duty, with uncertainties about timing due to existing agreements.

In a recent development, Microsoft's pending purchase of Activision Blizzard has raised the prospect of advertising integration into free-to-play PC and mobile titles, notably the iconic Call of Duty franchise. Microsoft had initially announced its intentions to acquire Activision Blizzard in 2022, making s with a colossal $70 billion deal. This ambitious acquisition faced significant hurdles along the way, with the UK's competition and market authority blocking its progress, followed by an injunction from the Federal Trade Commission.

However, after a series of legal battles, the European Union Commission ultimately granted approval for the merger, and Microsoft successfully appealed against the UK's competition authority. The merger agreement initially had a deadline of July 18, but both parties agreed to extend it until October 18.

In the event that the deal falls through, Activision Blizzard stands to receive a substantial $3 billion breakup fee. On the flip side, if the acquisition proceeds as planned, Microsoft has outlined bold intentions to introduce advertising within Call of Duty games.

A recent report from CharlieIntel on September 19 unveiled Microsoft's ambitions for Activision Blizzard, indicating a desire to expand "advertising" into free-to-play PC and mobile games. An intriguing aspect is the mention of PC under "Advertising," hinting at the potential inclusion of advertising in titles like Warzone.

However, there is uncertainty regarding the timing of these advertising changes. Xbox CEO Spencer has disclosed that Call of Duty won't immediately join Xbox Game Pass upon the completion of the Activision Blizzard acquisition. This is partly due to PlayStation's exclusive marketing rights for Call of Duty since 2014, a deal confirmed to extend at least until 2023 with Modern Warfare 3.

In conclusion, the fate of advertising integration in Call of Duty and other titles following Microsoft's acquisition of Activision Blizzard remains uncertain, given existing contractual obligations and the intricate nature of the deal."