UNITED KINGDOM: Microsoft has unveiled a strategic overhaul of its plans for the groundbreaking acquisition of gaming giant Activision. The tech behemoth’s audacious $69 billion merger move has been met with staunch opposition from the United Kingdom’s Competition and Markets Authority (CMA), which has remained steadfast in its refusal to endorse the deal.
In response, Microsoft has executed a shrewd maneuver to navigate the rocky regulatory terrain. The company has orchestrated a deal that sees Activision divest its non-European streaming rights to none other than Ubisoft Entertainment.
This recalibration of the agreement aims to address the concerns raised by the CMA and ensure the acquisition of the renowned gaming powerhouse, responsible for iconic franchises like Call of Duty.
The CMA’s unyielding stance comes as no surprise, as it reiterated its decision to block the initial proposal. However, Microsoft and Activision have proactively presented new terms to counter the regulatory roadblocks.
The linchpin of this revised agreement revolves around Activision ceding cloud streaming rights outside the European Economic Area, which will now be acquired by Ubisoft. This deal encompasses current and forthcoming PC and console titles from Activision’s stable, set for release over the next 15 years.
The intricacies of this deal grant Ubisoft not only the ability to harness these rights but also to extend them to other providers of cloud gaming services, including Microsoft itself. This strategic realignment underscores the companies’ determination to navigate the complex regulatory landscape and pave the way for the monumental acquisition.
Meanwhile, insiders have revealed that Microsoft is actively negotiating an extension of its acquisition contract with Activision Blizzard. This extension, if successful, would serve as a means to surmount the remaining regulatory hurdles and guarantee the triumphant completion of the massive deal.
Although the contract’s expiration wouldn’t necessarily spell doom for the merger, Microsoft is keen on forestalling other potential suitors and ensuring the seamless execution of its grand plan.
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