In May of this year, we reported on how the technology giant Microsoft wants to acquire the gaming company Activision Blizzard for the largest amount ever recorded in the gaming industry. Microsoft intended to buy one of the leading players in the gaming world and the owner of mega-popular games Call of Duty and World of Warcraft for a record $69 billion. However, Microsoft was first blocked by the U.S. and then the British competition regulator (CMA), which explained that the acquisition would make it a dominant player in the industry, especially in the cloud gaming category where it could potentially hold a monopoly.
Now, Microsoft has offered a new agreement to purchase Activision Blizzard after its initial offer of $69 billion was rejected by the British competition regulator. The Competition and Markets Authority (CMA) confirmed that Microsoft’s initial offer for the creator of Call of Duty was blocked and that it will now review the new agreement before deciding whether to give the green light for this acquisition.
New Offer
According to the new offer, Microsoft will not acquire the rights to Activision’s existing or new games stored in the cloud but would transfer those rights to the competing gaming company Ubisoft. The transfer of rights is designed to appease regulators in the United Kingdom who are concerned about the impact Microsoft’s proposed $68.7 billion deal will have on competition in cloud gaming. The restructured agreement has triggered a new regulatory investigation in the UK that could last until October 18. This restructured agreement means that if Microsoft concludes its proposed acquisition, it will not be able to release Activision Blizzard games exclusively on Xbox Cloud Gaming. Microsoft will also not be able to exclusively control the licensing terms for Activision Blizzard games on competing services. Instead, Ubisoft will control the streaming rights for Activision Blizzard games outside the EU and license titles back to Microsoft to be included in Xbox Cloud Gaming.
