Microsoft
Microsoft and its proposal to the CMA to complete the acquisition of Activision Blizzard includes the sale of streaming rights to Ubisoft
A new chapter in the Microsoft and Activision Blizzard case.
Microsoft has restructured its proposed acquisition of Activision Blizzard to include the sale of cloud streaming rights to Ubisoft. The deal, which has been submitted to the CMA (Competition and Markets Authority), is a new attempt to close the deal in the region. The UK regulator remains the biggest obstacle to closing the deal with Activision Blizzard.
Brad Smith, President of Microsoft, has confirmed the restructured proposal submitted to the CMA for approval of the acquisition of Activision Blizzard under UK law.
A different proposal in a new attempt to convince the CMA
In it, Microsoft tries to ensure market equality by avoiding the exclusivity of its products in its ecosystem. The company has stressed that “to address the concerns about the impact of the proposed acquisition on cloud game streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a narrower set of rights. This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, a leading global game publisher. The rights will be in perpetuity,” Microsoft said in its statement.
The CMA confirmed that it had blocked the previous proposal and would consider the new one.
Microsoft and Activision Blizzard, an imminent end?
Last July was an important moment for the agreement between Microsoft and Activision Blizzard. Judge Corley’s decision was in favor of Microsoft, with the FTC (United States Federal Chamber of Commerce) losing the case and giving the Redmond company a free pass to complete the acquisition for almost 70 billion dollars.
The deadline for the purchase to become official was extended last July to October 18. Both companies continue to await the resolution of negotiations with the CMA, which is hoping that proposals such as the sale of streaming rights to Ubisoft will overcome what is currently the biggest obstacle to closing the deal with Activision Blizzard.