Activision Blizzard to Sell Broadcasting Rights to Ubisoft in Bid for UK Approval for Microsoft Acquisition
Introduction
Activision Blizzard, developer of Call of Duty, said it will sell broadcasting rights to Ubisoft Entertainment in a new bid to secure UK Competition and Markets Authority approval for a deal that would see Microsoft acquire Activision for $69 billion.
Activision shares were up 1.1% and Microsoft shares were up 0.7% in New York afternoon. Shares of Ubisoft, listed in Paris, rose 8.8%, posting the largest gain in the European Stoxx 600 index.
Microsoft announced the biggest deal in video game history in early 2022, but the UK Competition and Markets Authority has become a stumbling block to the acquisition over fears that the American tech giant will expand its grip on the cloud gaming market.
Microsoft Introduces New Terms
After months of deliberations, the Competition and Markets Authority said on Tuesday it remains in its decision not to approve the deal, forcing Microsoft to introduce new terms.
Under the terms, Microsoft will not be able to release certain Activision games, such as “Overwatch” and “Diablo”, solely on its proprietary Xbox Cloud Gaming cloud streaming service or solely control the licensing terms of competitors’ services.
Instead, France’s Ubisoft will acquire the cloud streaming rights to Activision’s current PC and console games, as well as any new games the company releases in the next 15 years.
Microsoft said today that it considers the new terms “fundamentally different” and expects the Competition and Markets Authority to review them by October 18.
Authorities said they would look into the new deal as usual, with the first phase ending on October 18.
Two US companies have already extended the deadline to complete the deal after the regulatory process took longer than expected.
