The attempted deal between Microsoft and the United Kingdom for the American company’s definitive acquisition of Activision-Blizzard has taken a completely unexpected turn. Give me a moment and I’ll tell you about it.
Microsoft is restructuring its proposed deal with Activision-Blizzard to transfer the cloud gaming rights of both current and upcoming Activision Blizzard games to Ubisoft.
The rights transfer aims to appease UK regulators, who are concerned about the impact of Microsoft’s proposed $68.7 billion deal on cloud gaming competition.
If you can’t beat them: ally with your enemy
To address concerns about the impact of the proposed acquisition on cloud gaming streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a more limited set of rights,” states Microsoft’s President, Brad Smith.
“This includes the execution of an agreement upon the closing of our merger that transfers the cloud streaming rights of all current and new Activision Blizzard games for PC and consoles released over the next 15 years to Ubisoft Entertainment SA, a global leading game publisher. The rights will be perpetual.
This restructured agreement means that if Microsoft closes its proposed deal, it will not be able to exclusively publish Activision Blizzard games on Xbox Cloud Gaming. Moreover, Microsoft will not have exclusive control over the licensing terms of Activision Blizzard games on rival services.
“Ubisoft will compensate Microsoft for the cloud streaming rights of Activision Blizzard games through a one-time payment and a wholesale pricing mechanism based on the market, including an option that supports usage-based pricing,” explains Smith. “It will also give Ubisoft the opportunity to offer Activision Blizzard games to cloud gaming services running different operating systems than Windows.
Now it’s up to the United Kingdom to study the proposal
The CMA will evaluate the new agreement in the coming weeks and make a decision before October 18. Sarah Cardell, CEO of the CMA, states, “This is not a green light. We will carefully and objectively assess the details of the restructured agreement and its impact on competition, including in light of third-party comments.”
“Our goal remains unchanged: any future decision on this new agreement will ensure that the growing cloud gaming market continues to benefit from open and effective competition that drives innovation and choice.”
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