Microsoft Offers to Sell Activision Blizzard Cloud Streaming Rights to Ubisoft to Win UK Approval

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Microsoft Offers to Sell Activision Blizzard Cloud Streaming Rights to Ubisoft to Win UK Approval

Microsoft is pulling out all the stops and making a massive concession in an effort to win UK approval of its Activision Blizzard acquisition.

In a blog post, Microsoft says it is prepared to sell the cloud gaming rights for Activision Blizzard games to rival Ubisoft, in an effort to address the Competition and Market Authority’s concerns about the cloud gaming market:

In January 2022, Microsoft announced the proposed acquisition of Activision Blizzard, Inc., to advance our goal to bring more creative and innovative games to players everywhere and on any device. Today, we are taking another important step regarding this transaction. 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 makes clear its belief that this should address the CMA’s concerns entirely:

As a result of the agreement with Ubisoft, Microsoft believes its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022. As such, Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18.

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 offer is a massive concession on Microsoft’s part and shows just how far the company is willing to go to close the deal.

Microsoft Offers to Sell Activision Blizzard Cloud Streaming Rights to Ubisoft to Win UK Approval
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