Microsoft has made changes to its $69 billion agreement to acquire game developer Activision Blizzard in order to appease U.K. regulators and secure approval. The restructuring, announced on Tuesday, grants cloud gaming rights to Ubisoft, allowing them to distribute games through cloud streaming. As part of the agreement, Ubisoft will compensate Microsoft for these streaming rights. By making this adjustment, Microsoft hopes to address concerns raised by the U.K.’s Competition and Markets Authority (CMA) regarding the impact of the acquisition on cloud game streaming. Microsoft’s Vice Chair and President Brad Smith emphasized that the new transaction prevents Microsoft from exclusively releasing Activision Blizzard games on their own cloud streaming service and exerting exclusive control over the licensing terms for rival services. The CMA has initiated a fresh investigation into the restructured deal, with a decision expected by October 18. The CMA’s CEO Sarah Cardell emphasized the importance of maintaining a competitive and innovative cloud gaming market and assured that the details and impact of the revised agreement will be meticulously assessed.
Ubisoft has welcomed the new agreement, stating that it will allow games like Call of Duty to be accessible on their Ubisoft+ service and be licensed to other cloud gaming companies, service providers, and console makers as well. Activision CEO Bobby Kotick assured employees that this divestiture would not substantially change anything, emphasizing that the merger agreement with Microsoft and the closing deadline remain the same. Kotick expressed the company’s commitment to working closely with Microsoft and the CMA throughout the review process to swiftly overcome any remaining obstacles.
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