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Microsoft’s Revised Call of Duty Deal Set for UK Approval

Microsoft’s Revised Call of Duty Deal Set for UK Approval

The UK’s Competition Markets Authority (CMA) may approve Microsoft’s revised offer to acquire Activision Blizzard. The CMA had initially blocked Microsoft’s $69 billion deal due to concerns that it could harm competition in cloud gaming. In response, Microsoft submitted a restructured deal that addresses these concerns. As per the new proposals, cloud gaming rights owned

The UK’s Competition Markets Authority (CMA) may approve Microsoft’s revised offer to acquire Activision Blizzard. The CMA had initially blocked Microsoft’s $69 billion deal due to concerns that it could harm competition in cloud gaming. In response, Microsoft submitted a restructured deal that addresses these concerns.

CALL OF DUTY
Activision Blizzard

As per the new proposals, cloud gaming rights owned by Activision Blizzard will not be acquired by Microsoft as part of the deal. Instead, it has agreed that Ubisoft will be transferred the rights to stream Activision games from the cloud for 15 years. This will include popular games like Call of Duty. This move aims to ensure that cloud gaming competition, innovation, and choice are preserved in the UK.

Competition and Markets Authority
UBISOFT

While the CMA still has limited residual concerns, it views the revised deal positively because it keeps the cloud distribution of important games under the control of Ubisoft, an independent supplier. The CMA plans to open a consultation before making a final decision on the deal, which could be a significant development in one of the largest takeovers in the gaming industry.

This revised agreement reflects Microsoft’s determination to acquire Activision Blizzard, potentially boosting its Xbox console and gaming subscription business. The CMA’s decision will impact whether this deal can proceed globally.

Microsoft's President and VC, Brad Smith

Microsoft’s President and VC, Brad Smith, expressed encouragement by this positive step and presented solutions to address the CMA’s concerns. Activision Blizzard welcomed the preliminary approval, emphasizing its anticipation of working with Microsoft to complete the regulatory review process.

The deal not only has implications for the gaming industry but also showcases how competition rules might function in the UK post-Brexit. It will be interesting to see how this development shapes the future of cloud gaming and console competition in the UK and beyond.

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