Microsoft has today announced that it's restructuring its planned Activision-Blizzard acquisition by selling cloud gaming rights to Ubisoft.
The news was announced by Microsoft's Brad Smith just now, and published on the official Microsoft blog. Without a doubt, this restructuring of the proposed deal is to appease the UK CMA. According to Microsoft's Vice Chair and President, this deal will transfer the cloud streaming rights for all Activision Blizzard titles released over the next 15 years to Ubisoft. Part of the deal is that Activision Blizzard games cannot be exclusive to Xbox Cloud Gaming and will be on other consoles. "Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service—Xbox Cloud Gaming – or to exclusively control the licensing terms of Activision Blizzard games for rival services", the blog post from Microsoft reads.
As mentioned by Brad Smith on Twitter, the restructured proposal has also been submitted to the CMA. "Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law", the executive wrote on Twitter. "This new proposal also honors our prior commercial and regulatory commitments."
Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law. This new proposal also honors our prior commercial and regulatory commitments. Read more here: https://t.co/t0UBcouTP9
— Brad Smith (@BradSmi) August 22, 2023
Following Microsoft's renewed submission, the CMA has announced opening a new phase 1 investigation into the new proposed Microsoft/Activision-Blizzard megadeal. CMA's Chief Executive Sarah Cardell said:
Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. As part of this new deal, Activision’s cloud streaming rights outside of the EEA will be sold to a rival, Ubisoft, who will be able to license out Activision’s content to any cloud gaming provider. This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services. We will now consider this deal under a new Phase 1 investigation. This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments. Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.
The new Phase 1 investigation was launched today and has an October 18 deadline. An interesting development in the heavily-debated planned merger between Microsoft and Activision-Blizzard. We'll update you as soon as more information comes in. What are your thoughts about this restructured deal? Hit the comments below.
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