Microsoft Makes Changes to Activision Deal to Woo British Regulators

British antitrust officials review revised offer

Microsoft has offered changes to its $69 billion merger with Activision Blizzard in an effort to gain approval from British antitrust regulators. This move is aimed at addressing concerns about the impact of the deal on cloud gaming technology.

Addressing concerns over cloud gaming

The revised offer by Microsoft seeks to address the concerns of British regulators regarding the potential negative impact on the development of cloud gaming technology. Microsoft has proposed transferring the cloud streaming licensing rights for all current and new Activision Blizzard games to rival game publisher Ubisoft Entertainment.

The last hurdle to clear

The approval from British regulators is the final obstacle for the blockbuster merger between Microsoft and Activision Blizzard. The deal, which initially faced resistance, now appears to be on track for approval.

Preventing exclusive titles on Xbox Cloud Gaming

Under the new terms, Microsoft will give Ubisoft control over licensing deals for cloud gaming services for the next 15 years. This move is aimed at preventing Microsoft from launching games exclusively on its own cloud streaming service, Xbox Cloud Gaming.

Caution from the Competition and Markets Authority

Sarah Cardell, the chief executive of the Competition and Markets Authority (C.M.A.), has described the revised offer as "substantially different," but emphasized that a final decision has not been made. The C.M.A. aims to ensure that open and effective competition in the cloud gaming market continues to drive innovation and choice.

Overcoming previous objections

The Microsoft-Activision merger has faced scrutiny since it was announced in January 2022. However, Microsoft has already overcome objections from the European Union and a U.S. federal judge. The British regulators' decision is the last remaining obstacle.

October deadline for a decision

The Competition and Markets Authority is expected to issue a decision by October 18, the deadline set by Microsoft to complete its deal with Activision.