Microsoft Proposes New Deal for Activision Takeover With Ubisoft -- Update
August 22 2023 - 3:54AM
Dow Jones News
By Michael Susin
The U.K. Competition and Markets Authority plans to review
Microsoft's new proposed deal to acquire Activision, after it
blocked an initial $75 billion takeover proposal earlier this
year.
The CMA said on Tuesday that Microsoft has offered to only buy
the cloud streaming rights to all current and future Activision
games released during the next 15 years in the European Economic
Area.
The cloud streaming rights outside the European Economic Area
would be divested to Ubisoft Entertainment once the acquisition is
completed, it added.
Under the deal Ubisoft will be able to license out Activision's
content under different business models, including subscription
services. The deal also proposes that Ubisoft would have the
ability to require Microsoft to provide versions of games on
operating systems other than Windows.
"This is not a green light. We will carefully and objectively
assess the details of the restructured deal and its impact on
competition, including in light of third-party comments," CMA Chief
Executive Sarah Cardell said.
"Our goal has not changed -- any future decision on this new
deal will ensure that the growing cloud gaming market continues to
benefit from open and effective competition driving innovation and
choice."
A new investigation will be carried out with a deadline for a
decision set for Oct. 18.
Microsoft's Vice Chair and President Brad Smith said in a blog
post in the company's website that Ubisoft will compensate
Microsoft for the cloud streaming rights to Activision Blizzard's
games through a "one-off payment and through a market-based
wholesale pricing mechanism, including an option that supports
pricing based on usage".
The deal would give Ubisoft the opportunity to offer Activision
Blizzard's games to cloud gaming services running non-Windows
operating systems, he added.
In a separate statement, Ubisoft said the deal would enable to
bring cloud streaming access of Activision Blizzard games to more
players all around the world, further strengthening Ubisoft's
content offering through its subscription service Ubisoft+.
Activision didn't immediately reply to a request for
comment.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
August 22, 2023 03:39 ET (07:39 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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