Microsoft Clears Hurdle in Activision Blizzard Acquisition

Image: Microsoft Logo

Microsoft has overcome a major obstacle in its acquisition of Activision Blizzard, the maker of popular game franchise Call of Duty. The UK Competition and Markets Authority (CMA), which previously blocked the deal due to concerns about its impact on the cloud gaming market, has now stated that Microsoft has addressed its main concerns.

Ubisoft to Take Over Cloud Gaming Rights

Image: Ubisoft Logo

One of the key reasons why the CMA is now in favor of the acquisition is because Microsoft has agreed to sell the cloud gaming rights for Activision Blizzard games to Ubisoft. This move will establish Ubisoft as a major content supplier to cloud gaming services, similar to the role Activision would have played as an independent player. By no longer controlling the cloud gaming rights for Activision’s content, Microsoft will not be able to limit access to the games or withhold them from rivals.

Microsoft’s Reduced Control

The CMA is also pleased that Microsoft will no longer have complete control over Activision Blizzard games outside of the Xbox ecosystem. Ubisoft will have the ability to port the games to operating systems other than Windows and support game emulators when requested. This reduced control by Microsoft is seen as a positive step towards gaining approval for the acquisition.

Positive Reactions from Microsoft and Activision Blizzard

Image: Brad Smith, President of Microsoft

Microsoft’s President, Brad Smith, expressed his encouragement over the CMA’s positive response to the proposed solutions. He tweeted, “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline.” Activision Blizzard also welcomed the CMA’s preliminary approval and looks forward to working with Microsoft to complete the regulatory review process.

Final Decision Expected by October 6

The CMA is expected to make a final decision on the acquisition by October 6. If approved, the deal is set to close by October 18. Both Microsoft and Activision Blizzard are optimistic about the outcome and the future of their partnership.

Image: Microsoft and Activision Blizzard logos