Britain blocks Microsoft’s $69 billion acquisition of Activision Blizzard
LONDON — Britain’s top competition regulator on Wednesday moved to block Microsoft‘s acquisition of video game publisher Activision Blizzard.
The measure marks a major blow for the U.S. tech giant, as it seeks to convince authorities that the deal will benefit competition. Microsoft said it plans to appeal the decision.
Shares of Activision Blizzard slumped more than 8% in early U.S. trading. Microsoft shares were up 7% but this was largely linked to the company’s strong earnings report Tuesday.
The U.K. Competition and Markets Authority said it opposed the deal as it raises competition concerns in the nascent cloud gaming market. The CMA previously held concerns about competition in games consoles being undermined but ruled out this concern in a preliminary decision in March.
Microsoft could make Activision’s games exclusive to its cloud gaming platform, Xbox Game Pass, cutting off distribution to other key industry players, the CMA said.
Cloud gaming is a technology that enables gamers to access games via companies’ remote servers — effectively streaming a game like you would a movie on Netflix. The technology is still in its infancy, but Microsoft is betting big on it becoming a mainstream way of playing games.
“Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities,” the CMA said in a press release Wednesday.
Microsoft offered the CMA remedies in an attempt to resolve its concerns — including “requirements governing what games must be offered by Microsoft to what platforms and on what conditions over a ten-year period.” However, the regulator rejected the proposals.
“Given the remedy applies only to a defined set of Activision games, which can be streamed only in a defined set of cloud gaming services, provided they are purchased in a defined set of online stores, there are significant risks of disagreement and conflict between Microsoft and cloud gaming service providers, particularly over a ten-year period in a rapidly changing market,” the CMA said.
‘Flawed understanding of this market’
Microsoft Vice Chair and President Brad Smith said in a statement that the company remains “fully committed to this acquisition and will appeal.”
“The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom,” Smith said Wednesday.
“We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies. We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”
Bobby Kotick, CEO of Activision Blizzard, told employees in a letter Wednesday that the company and Microsoft have “already begun the work to appeal to the UK Competition Appeals Tribunal.”
“We’re confident in our case because the facts are on our side: this deal is good for competition,” he said.
“At a time when the fields of machine learning and artificial intelligence are thriving, we know the U.K. market would benefit from Microsoft’s bench strength in both domains, as well as our ability to put those technologies to use immediately,” Kotick added. “By contrast, if the CMA’s decision holds, it would stifle investment, competition, and job creation throughout the UK gaming industry.”
An Activision Blizzard spokesperson said the CMA’s decision represented “a disservice to UK citizens, who face increasingly dire economic prospects.”
“We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric — the UK is clearly closed for business,” the spokesperson said.
Microsoft announced its intention to acquire Activision Blizzard in January 2022 for $69 billion, in one of the biggest deals the video game industry has seen to date.
Executives at the Redmond, Washington-based technology giant believe the acquisition will boost its efforts in gaming by adding lucrative franchises like Call of Duty and Candy Crush Saga to its content offerings.
However, some of Microsoft’s competitors contested the deal, concerned it may give Microsoft a tight grip on the $200 billion games market. Of particular concern was the prospect that Microsoft may shut off distribution access to Activision’s popular Call of Duty franchise for certain platforms.
Sony, in particular, has voiced concern with Microsoft’s Activision purchase. The Japanese gaming giant fears that Microsoft could make Call of Duty exclusive to its Xbox consoles in the long run.
Microsoft sought to allay those concerns by offering Sony, Nintendo, Nvidia and other firms 10-year agreements to continue bringing Call of Duty to their respective gaming platforms.
Microsoft contends it wouldn’t be financially beneficial to withhold Call of Duty from PlayStation, Nintendo and other rivals given the licensing income it generates from keeping the game available on their platforms.
Microsoft’s Smith told CNBC last month that the company is offering Sony the same agreement as it did Nintendo — to make Call of Duty available on PlayStation at the same time as on Xbox, with the same features. Sony still opposes the deal.
The CMA had raised concerns with the potential for Microsoft to hinder competition in the nascent cloud gaming market via its Xbox Game Pass subscription service, which offers cloud gaming among its perks. Microsoft has committed to bring new Call of Duty titles to Xbox Game Pass on day one of its release.
Cloud gaming, or the ability to access games via PC or mobile devices over the internet, is still in its infancy and requires a strong broadband connection to work well. Cloud gaming made up only a fraction of global internet traffic in 2022.
Microsoft still needs to convince other regulators not to block the deal. The EU continues to probe the merger to assess whether it hurts competition, while the U.S. Federal Trade Commission has sued to block the deal on antitrust grounds.
Sopa Images | Lightrocket | Getty Images
OpenAI’s short-form artificial intelligence video app Sora hit 1 million downloads less than five days after its launch in late September, according to an executive.
Bill Peebles, head of Sora at OpenAI, shared the milestone in a post on X late Wednesday. He said Sora reached 1 million downloads even faster than ChatGPT, the company’s popular AI chatbot that supports 800 million weekly active users.
Sora allows users to generate short videos for free by typing in a prompt. The app is only available on iOS devices and is invite-based, which means people need a code to access it. Despite these restrictions, Sora has climbed to the No. 1 spot in Apple’s App Store.
“Team [is] working hard to keep up with surging growth,” Peebles wrote.
Sora’s launch has also sparked intense backlash, namely around whether the app infringes on copyrights. CNBC viewed videos on the platform that included characters from shows like “SpongeBob SquarePants,” “Rick and Morty” and “South Park,” and was able to generate many characters independently.
The Motion Picture Association, which advocates on behalf of the television, motion picture and home video industries, said in a statement Monday that “videos that infringe our members’ films, shows, and characters have proliferated on OpenAI’s service.”
“OpenAI needs to take immediate and decisive action to address this issue,” Charles Rivkin, CEO of the MPA said in the statement. “Well-established copyright law safeguards the rights of creators and applies here.”
OpenAI CEO Sam Altman said the company will soon give rights holders more granular control over character generation, according to a blog post last week.
During a briefing with reporters at the company’s DevDay event on Monday, Altman said some users have complained that Sora is too restrictive. He asked for patience as the company irons out best practices.
“Please give us some grace,” Altman said. “The rate of change will be high.”
WATCH: Hollywood backlash grows against OpenAI’s new Sora video model
An Intel manufacturing technician holds an Intel Core Ultra series 3 processor (code-named Panther Lake) built on Intel 18A, inside Intel’s new Fab 52 in Chandler, Arizona, in September 2025.
Courtesy: Intel
Intel on Thursday announced its new PC chips slated to debut in laptops next year as the chipmaker battles to turn around its struggling business.
The company said the new Panther Lake processor is made with its 18A technology and is the most advanced node made on U.S. soil.
The new generation of chips will be made at Intel’s Fab 52 facility in Arizona, which the company said is now fully operational and set to ramp production.
“The United States has always been home to Intel’s most advanced R&D, product design and manufacturing – and we are proud to build on this legacy as we expand our domestic operations and bring new innovations to the market,” CEO Lip-Bu Tan said in a release announcing the news.
Intel CEO Lip-Bu Tan holds a wafer of CPU tiles for the Intel Core Ultra series 3, code-named Panther Lake, outside the Intel Ocotillo campus in Chandler, Arizona. Panther Lake is the first client system-on-chips (SoCs) built on the Intel 18A process node.
Courtesy: Intel
Intel’s latest reveal comes during a critical stretch for the beleaguered chipmaker that has lagged in recent years and struggled to keep up with cutting-edge chip demands spurred by the artificial intelligence revolution.
In August, the U.S. government took a 10% stake in the company in an effort to beef up U.S. manufacturing capabilities. Intel has also received investments from SoftBank and AI chipmaking giant Nvidia.
Since taking the helm of Intel in March, Tan has faced massive pressure to deliver.
This summer, President Donald Trump called Tan “highly CONFLICTED” and demanded his resignation, but later changed his tone.
Intel shares have bounced 87% this year.
Intel year-to-date stock chart.
Thomas Kurian CEO of Google Cloud, speaks at the Google Cloud Next conference in Las Vegas on April 8, 2025.
Candice Ward | Google Cloud | Getty Images
Google is taking another shot at selling businesses on artificial intelligence agents by introducing subscriptions featuring agents that perform specific work tasks.
Gemini Enterprise targets large organizations, starting at a monthly fee of $30 per person. Gemini Business, for smaller clients, costs $21 per person each month. The offerings enable corporate workers to build agents that draw on data from Box, Microsoft and Salesforce products.
Premade Google agents for software development, data science and customer engagement also come with the new Gemini subscriptions, along with access to agents from Workday and other companies. They include the capabilities of Agentspace, an agent building product Google announced in December. Google will upgrade current Agentspace clients to Gemini Enterprise or Gemini Business free of charge through the course of their contracts, a spokesperson said.
Gemini subscriptions come with Model Armor, a feature for inspecting and blocking requests and responses in AI chats, so organizations don’t need to fuss with setting it up.
The launch comes three days after OpenAI showed how people can access tools from third-party apps in ChatGPT. Google and Microsoft, meanwhile, are looking to get enterprises hooked on agents that take care of some processes, so employees can do other things. Both companies sell services aimed at developers and at nontechnical workers. Neither Gemini Enterprise nor Gemini Business require coding.
“We’ve seen people from consulting services companies, telecommunications companies, software companies, hospitality companies and a variety of different manufacturing companies all using these, and in a variety of scenarios,” said Thomas Kurian, CEO of Google’s cloud group, in a media briefing.
Kurian, who accelerated the unit’s year-over-year revenue growth back above 30% in the second quarter, named cruise line Virgin Voyages as a Gemini Enterprise early adopter.
Firms are more likely to be exploring or testing AI agents than putting them into production, said Chirag Dekate, an analyst at technology industry researcher Gartner. But Google’s handling of security and governance should ease concerns among big companies evaluating agent systems, Dekate said.
Google’s new Gemini subscriptions depend on the company’s Gemini AI models for working with text, images and videos. Google and other model makers regularly release new versions, and enterprises want to avoid getting stuck with lagging models when selecting agent software, Dekate said.
“How Google is able to leverage this unified messaging in the Gemini 3.0 launch sequence, which is coming soon, I think, will also be a crucial litmus test,” he said. “In other words, will they be able to offer a same-day sort of innovation cycle, or is this going to be staggered in terms of adoption patterns?”
WATCH: Box CEO on AI monetization: Agents offer new monetization for existing software companies
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024