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Microsoft wants to acquire ZeniMax Media and compete with other gaming companies, but it still needs clearance from the European Commission antitrust regulators. The EU has to decide if the acquisition can proceed.
Microsoft buys Zenimax Media and Bethesda Softworks
The EU is set to reveal its decision on Microsoft’s purchase before March. American tech company headquartered in Washington first announced its procurement of Zenimax Media in September 2020. But before the full purchase could be completed, Microsoft still has to pass regulatory hurdles in the European Union.
Acquiring the American video game holding company also means buying Bethesda Softworks, Bethesda Studios, Arkane, Tango Gameworks, id Software, Roundhouse Studios, Machine Games, ZeniMax Online Studios, and Alpha Dog. This is because Zenimax Media is the said groups’ parent company.
Microsoft owns them now, and the EU ruling is the remaining phase that will complete MS’ ownership. Furthermore, once done, the company will now be in charge of popular games such as “Fallout” and “The Elder Scrolls.”
"Gaming is the most expansive category in the entertainment industry, as people everywhere turn to gaming to connect, socialize and play with their friends," Satya Nadella, Microsoft CEO, said in the press release at the time of the acquisition last year. As a proven game developer and publisher, Bethesda has seen success across every category of games, and together, we will further our ambition to empower the more than three billion gamers worldwide."
Why the EU ruling is necessary
As per CNBC, Microsoft bought Zenimax for $7.5 billion, and this is the tech giant’s biggest gaming acquisition so far. The deal topped MS’ purchase of Minecraft developer Mojang in 2014, which cost $2.5 billion.
The EU ruling is needed because the EU regulators have to assess the purchase and check if there are any antitrust issues in the deal, Reuters reported. Moreover, the regulators will see if Microsoft complied with the European Union antitrust regulation to make sure that market competition will not be unfairly harmed by the deal.
