China approves Microsoft’s Activision Blizzard acquisition as it still faces hurdles in the US and UK
- The State Administration for Market Regulation cleared the blockbuster US$69 billion takeover bid, which faces legal battles in the US and UK
- Activision Blizzard titles once enjoyed enormous popularity in China, but many have been pulled from the market after a dispute with NetEase
The SAMR gave the green light to the takeover “unconditionally”, according to a statement published to its official website on Tuesday. The approval was dated May 18.
The blockbuster deal has so far been approved by nearly 40 countries, including 27 in the European Union, along with Japan and Brazil. However, Microsoft still faces antitrust hurdles to completing the acquisition.
China’s No 2 video games studio does not expect any overseas titles until 2025
In December, the US Federal Trade Commission sued to block the deal, alleging that it would allow the Xbox owner to “suppress competitors” in the nascent subscription and cloud gaming segments. Microsoft is defending the deal in court.
The software giant is also challenging the UK Competition and Markets Authority, which last month blocked the deal also over competition concerns. The merger agreement expires on July 18, but it could be extended.
Even if the Microsoft acquisition goes through, it could be a while before suspended titles return to China, as they will require a local publisher and a license from the National Press and Publication Administration (NPPA).
Blizzard said last November that its licensing agreements in China contributed just 3 per cent of the company’s consolidated net revenue in 2021.
Outside of gaming, the Chinese government has rejected takeovers with more political implications. It quashed Qualcomm’s US$44 billion bid for Dutch chip maker NXP Semiconductors in 2018, and in 2009 it killed a US$2.4-billion deal between Coca-Cola and Chinese beverage maker Huiyuan Juice.