One sentence summary – The Competition Markets Authority (CMA) has given preliminary approval to Microsoft’s revised offer to acquire Activision Blizzard, addressing concerns about competition in cloud gaming by excluding the purchase of cloud gaming rights and transferring the rights to stream Activision games from the cloud to Ubisoft for 15 years, with a final decision expected next month pending global approval.
At a glance
- The Competition Markets Authority (CMA) has indicated potential approval of Microsoft’s revised offer to acquire Activision Blizzard.
- The new proposal excludes the purchase of Activision Blizzard’s cloud gaming rights.
- Microsoft has agreed to transfer the rights to stream Activision games from the cloud to Ubisoft for 15 years.
- The deal is seen as a significant achievement and a “test case” for the CMA.
- A final decision on the revised bid is expected next month, pending global approval.
The details
The Competition Markets Authority (CMA), the UK’s competition watchdog, has indicated that Microsoft’s revised offer to acquire Activision Blizzard could potentially be approved.
Previously, the CMA had blocked Microsoft’s original $69 billion deal due to concerns about competition in the cloud gaming sector.
The new proposal from Microsoft, however, excludes the purchase of Activision Blizzard’s cloud gaming rights.
To address the CMA’s concerns, Microsoft has agreed to transfer the rights to stream Activision games from the cloud to Ubisoft.
This agreement is set to last for a period of 15 years.
The move is intended to preserve competition, innovation, and choice in cloud gaming, according to the CMA’s chief executive, Sarah Cardell.
Before a final decision on the deal is made, a consultation will be conducted.
The revised deal between Microsoft and Activision is seen as a significant achievement, given the previous concerns and potential collapse of the takeover.
Sony, a major player in the gaming industry, had also expressed objections to the deal.
Sony feared that Microsoft could limit access to major games on its PlayStation platform.
However, the CMA believes that with additional protections, gamers will have various ways to access Activision’s games, including through cloud-based subscription services.
The agreement between Microsoft and Activision ensures that the cloud distribution of these games remains with Ubisoft, an independent supplier.
This arrangement marks the first “test case” for the CMA since gaining additional powers after Brexit.
Microsoft hopes for a final decision on the revised bid next month.
The deal requires global approval.
Activision has expressed its satisfaction with the preliminary approval and looks forward to completing the regulatory review process.
In addition to cloud gaming, Microsoft’s acquisition of Activision also brings its mobile games studio in-house.
This acquisition places Microsoft in a unique position, allowing it to cover all gaming platforms with one subscription.
An accidental leak of an unredacted document revealed potential plans for refreshed Xbox consoles in 2024 and a new next-generation console in 2028.
While not directly related to the acquisition, this leak adds to the overall context of Microsoft’s gaming strategy.
In summary, the revised offer from Microsoft to acquire Activision Blizzard has gained preliminary approval from the CMA.
The new proposal addresses concerns about competition in cloud gaming by excluding the purchase of cloud gaming rights.
Microsoft has agreed to transfer the rights to stream Activision games from the cloud to Ubisoft for 15 years.
The deal is seen as a significant achievement for both companies and represents a “test case” for the CMA.
A final decision on the revised bid is expected next month, pending global approval.
The acquisition also brings Microsoft’s mobile games studio in-house, positioning the company to cover all gaming platforms with one subscription.
Additionally, an accidental leak revealed potential plans for future Xbox consoles.
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| bbc.co.uk |
|---|
| – The UK’s competition watchdog, the Competition Markets Authority (CMA), has stated that Microsoft’s revised offer to acquire Activision Blizzard has the potential to be approved. – |
| The CMA had previously blocked Microsoft’s original $69 billion deal due to concerns about competition in cloud gaming. – |
| The new proposal from Microsoft excludes the purchase of Activision Blizzard’s cloud gaming rights. |
| – Microsoft has agreed to transfer the rights to stream Activision games from the cloud to Ubisoft for 15 years. – |
| The CMA’s chief executive, Sarah Cardell, has emphasized the importance of preserving competition, innovation, and choice in cloud gaming. – |
| A consultation will be conducted before a final decision on the deal is made. – |
| The revised deal is seen as a significant achievement for Microsoft and Activision, given the previous concerns and potential collapse of the takeover. |
| – Sony had also expressed objections to the deal, fearing that Microsoft could limit access to major games on its PlayStation platform. |
| – |
| The CMA believes that with additional protections, gamers will have various ways to access Activision’s games, including through cloud-based subscription services. – |
| The revised deal ensures that the cloud distribution of these games remains with Ubisoft, an independent supplier. – |
| The agreement marks the first “test case” for the CMA since gaining additional powers after Brexit. – |
| Microsoft hopes for a final decision on the revised bid next month, with the deal requiring global approval. |
| – Activision has expressed its satisfaction with the preliminary approval and looks forward to completing the regulatory review process. – |
| The deal places Microsoft in a unique position, allowing it to cover all gaming platforms with one subscription. – Microsoft’s acquisition of Activision also brings its mobile games studio in-house. |
| – The accidental leak of an unredacted document revealed potential plans for refreshed Xbox consoles in 2024 and a new next-generation console in 2028. |
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