Microsoft is altering its proposed acquisition of Activision Blizzard to address concerns raised by the UK’s Competition and Markets Authority (CMA). To mitigate the CMA’s concerns about potential monopolies in the cloud gaming space, Microsoft intends to transfer 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.
The CMA had previously blocked Microsoft’s initial acquisition proposal, citing fears of creating a monopoly in cloud gaming. Despite Microsoft’s submission citing a binding agreement with Sony to keep Call of Duty on PlayStation and the EU’s approval of the merger plans, the CMA remained unsatisfied. As a result, Microsoft is now restructuring the deal to include Ubisoft as a recipient of cloud streaming rights.
The CMA will evaluate this new approach, and its decision will determine whether the acquisition proceeds. Microsoft hopes that this restructured deal, with the inclusion of Ubisoft, will address the CMA’s concerns and allow the acquisition to move forward.
