Skip to content
  • by
  • News
  • 2 min read

Microsoft Restructures Activision Blizzard Acquisition Deal

Microsoft is making changes to its proposed acquisition of Activision Blizzard in an effort to address concerns raised by the UK's Competition and Markets Authority (CMA). The company plans to leverage the cloud gaming rights it will acquire from Activision Blizzard by selling current and future games from the publisher to Ubisoft. This move aims to gain approval from the CMA.

In a statement, Microsoft President Brad Smith explained that the restructuring of the deal will involve transferring the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft. These rights will be in perpetuity and will enable Ubisoft to control the streaming rights to Activision Blizzard titles outside of the European Union. Ubisoft will also have exclusive licensing control to include these titles in Xbox Cloud Gaming.

As part of the agreement, Ubisoft will compensate Microsoft for the cloud streaming rights through a one-off payment and a market-based wholesale pricing mechanism. Ubisoft will also have the opportunity to offer Activision Blizzard's games to cloud gaming services running non-Windows operating systems. Additionally, Ubisoft will have the power to add Activision Blizzard titles to its Ubisoft+ Multi Access subscription service, available on multiple platforms for a monthly fee.

The CMA has been concerned about the impact of Microsoft's acquisition on the cloud gaming landscape. In response, Microsoft has signed 10-year deals with competitors such as Sony, Nintendo, Valve, and NVIDIA. Similar agreements have been made with cloud gaming-focused companies like Ubitus and Boosteroid. These deals will not be affected by the restructured agreement with Ubisoft.

The CMA will review the new deal over the coming weeks to determine if it satisfies their concerns. Microsoft and Activision Blizzard have an extended deadline until October 18th to reach a decision. If approval is not granted by then, both parties will need to renegotiate the terms of the deal.

Sources:
– [Article Title](URL)
– [Article Title](URL)