Microsoft: A New Episode in the Activision Blizzard Acquisition Series – Financial Postman

Microsoft has made a new bid to acquire Activision Blizzard, maker of the Call of Duty video game series, in the latest in the history of the largest deal of its kind in the gaming industry.

It is reported that the original acquisition agreement amounted to 69 billion dollars It was effectively banned by regulators in Britain. for the new show Microsoft President Brad Smith said And that it is “much different” and must be agreed. For its part, the British Competition and Markets Authority (CMA) will study the agreement, but it clarified that it is not a “green light”.

Microsoft is “fighting” in every way for the acquisition of Activision

The Capital Markets Authority has announced that it will make a decision on Microsoft’s revised offer by October 18th – without approval, the deal cannot effectively move forward globally.

Microsoft hopes the merger will boost demand for its Xbox console, and even more so for the company’s subscription gaming service.

The new show

As part of the new deal, Microsoft agreed to transfer Activision’s game streaming rights to the cloud of Ubisoft, also a video game publisher, for a period of 15 years.

“Microsoft will not be able to release Activision Blizzard games exclusively on its own cloud streaming service – Xbox Cloud Gaming – or unilaterally control Activision Blizzard’s licensing terms on other competing platforms,” ​​said the Microsoft president.

To date, Microsoft’s initial bid for Activision has been approved in 40 countries. Including the European Union and China. The Capital Markets Authority blocked the acquisition in April, warning it would hurt innovation and player choice in the fast-growing cloud gaming industry.

The CMA’s decision prompted an angry response from Brad Smith, who said it was “bad for Britain” and represented the “darkest day” for Microsoft in its four decades in the country.

However, it is noteworthy that the US Federal Trade Commission continues to attempt to obstruct the agreement in the United States, but with these moves unacceptable in courtrooms.

As the BBC has noted, the CMA’s decision was a blow to the British government, which wants to make the country a technological powerhouse.

What did they say?

Under the proposed revised terms, Microsoft explains that Ubisoft will make Activision content available to “all cloud game providers, including Microsoft itself.”

Activision president Bobby Kotick said the deal had been a “longer journey than expected” but that “essentially nothing changes” under the new offering.

He said, “We will continue to work closely with Microsoft and the Capital Markets Authority throughout the review process and are committed to helping Microsoft overcome any final hurdles as quickly as possible.”

Sarah Cardell, CEO of the Capital Markets Authority, said that the new offer made by Microsoft “is radically different from what was put on the table before.” “We will carefully and objectively assess the details of the restructured agreement and its impact on competition, including in light of third-party comments,” it said.

He concludes, “Our objective has not changed – any future decision on this new agreement will ensure that the growing cloud video game market continues to benefit from open and effective competition that drives innovation and choice.”