Microsoft Submits New Activision Blizzard Deal for Review After CMA Confirms Original Deal Block

ign.com:

Microsoft has submitted a new Activision Blizzard deal for review after the UK’s Competition and Markets Authority (CMA) confirmed the original deal is blocked.

To address the CMA’s concerns, Microsoft has restructured the deal to buy a “narrower” set of rights. This includes signing a deal with Assassin’s Creed maker Ubisoft to sell the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years, and for non-exclusive rights to stream in the European Economic Area. The rights will be in perpetuity.

"As a result of the agreement with Ubisoft, Microsoft believes its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022," Microsoft president Brad Smith said.

"As such, Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18."

Microsoft said that under the restructured buyout, it will not be in a position either to release Activision Blizzard games exclusively on Xbox Cloud Gaming, or exclusively control the licensing terms of Activision Blizzard games for rival services, opening the possibility of Activision Blizzard games appearing on PlayStation and Nintendo consoles on cloud gaming services. Ubisoft can now commercialise the distribution of the games via cloud streaming, including to Microsoft itself.

Ubisoft will buy the cloud streaming rights to Activision's games through a one-off payment and through a market-based wholesale pricing mechanism, including an option