UK Finally Gives Microsoft the Go-Ahead for the Activision Blizzard King Merger

After a long wait, Microsoft will proceed with its multi-million dollar deal of acquiring Activision without any hurdle by 06 October 2023. The decision came after the Competition and Markets Authority (CMA) officials thoroughly reviewed the restructured deal offered by Microsoft. To maintain competitive integrity in the cloud gaming market, before the acquisition, Activision will sell its cloud gaming rights to an independent third party, Ubisoft Entertainment SA (Ubisoft).

The restructured deal will ensure that the cloud gaming industry will serve as an open competitive market for the coming years and add to the growth.

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Microsoft Restructured Deal Includes Activision Selling Its Cloud Gaming Rights to Ubisoft

When Microsoft offered to acquire Activision for $69 Million, the Competition and Markets Authority (CMA) raised concerns about the deal's harmful impact on the competition of the cloud gaming market in the UK. Since Microsoft themselves are a giant in cloud gaming, acquiring Activision will consolidate its hold, negatively impacting competition and newcomers. 

To resolve this, Microsoft presented them with a restructured deal to fix all CMA's possible concerns. According to the new agreement, Activision will sell its cloud streaming rights to Ubisoft, which will act as an independent third party. Here is what Sarah Cardell, CEO of CMA, has to say about the new deal:

The CMA's position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved. In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns.

It would have been far better, though, if Microsoft had put forward this restructure during our original investigation. This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.

CMA is satisfied with the new deal, and by 05 October 2023, Microsoft could go ahead with its much-awaited acquisition if no other court objects to the new agreement.