Microsoft Enters New Activision Blizzard Deal to UK CMA, With Ubisoft Getting Licensing Rights Until 2038

mmorpg.com:

Microsoft’s push to get the UK Competitions and Markets Authority (CMA) on board with its acquisition of Activision Blizzard continues, with a surprising new potential partner: Ubisoft. Microsoft has submitted a new proposal for the acquisition after the CMA confirmed the original deal would still be blocked.

The CMA rejected the original deal over the issue of cloud gaming, and that’s where Ubisoft comes in. The new deal proposed would transfer cloud gaming rights outside of the EEA (most of Europe)  to Activision Blizzard games released over the next 15 years (that’s 2038) to Ubisoft. The restructured deal would divest those rights to Ubisoft before Microsoft acquires Activision Blizzard, in an effort to address the CMA's original concern over cloud gaming.

What's more, Ubisoft would be able to license out Activision Blizzard content under a number of different business models. This means things like licensing to cloud gaming service providers or subscription services. This would also include the ability to license it back to Microsoft. To sweeten the deal, Ubisoft would also have the power to require Microsoft to release titles covered under the agreement on non-Windows operating systems if they choose. If this part of the deal goes through, Ubisoft will pay Microsoft for the streaming rights through a one-time payment and Also pay a wholesale rate based on usage.

For its part, the UK CMA sent out a press release, and a comment via Sarah Cardell, Chief Executive of the CMA>

“The CMA has today confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed.

Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table