Microsoft’s Acquisition of Activision Blizzard Moves Forward with UK Approval
The long-awaited acquisition of Activision Blizzard by Microsoft has taken a significant step forward as the British Competition and Markets Authority (CMA) finally granted preliminary approval. This positive development paves the way for further assessments and a final decision to be made.
Microsoft President Brad Smith and Activision Blizzard’s Chief Customer Officer and Executive Vice President, LuLu Cheng Meservey, both took to social media to express their optimism about the outcome. They eagerly anticipate successfully completing the transaction before the looming October 18 deadline.
Earlier concerns raised by the British CMA over potential disruptions to competition in the cloud gaming market had slowed down the approval process. To address these concerns, Microsoft submitted a proposal in August pledging to sell off Activision Blizzard’s cloud gaming rights for the next 15 years to independent third-party player, Ubisoft.
This means that Microsoft will not be able to restrict the cloud streaming rights of popular Activision Blizzard products such as “The Final Hour,” “Strike,” and “World of Warcraft.” Instead, these titles must be made available on a variety of platforms, including subscription services, ensuring access for competitors. Ubisoft, as an independent third-party manufacturer, can distribute the content through any cloud gaming provider.
The CMA views this change as a significant improvement, largely alleviating its previous concerns. Microsoft has also assured the CMA that it will uphold the pivotal terms of the deal with Ubisoft to satisfy any remaining worries.
Promoting Competition and Choice
In its statement, the CMA emphasized that its position has not wavered, highlighting that the merger can only proceed if cloud gaming continues to foster competition, innovation, and choice. It remains determined to preserve an environment that allows for a wide variety of options in the market.
This development brings Microsoft one step closer to realizing its ambitions of acquiring Activision Blizzard and marks a positive stride towards a new era in the gaming industry.
Microsoft’s acquisition of Activision Blizzard is finally making progress. The British Competition and Markets Authority (CMA) issued a statement today (22nd), approving the acquisition on a preliminary basis, and the next step will be to complete relevant assessments and make a final decision.
Microsoft President Brad Smith and Activision Blizzard Chief Customer Officer and Executive Vice President LuLu Cheng Meservey have expressed optimism about the outcome on social media and look forward to successfully completing the transaction before the October 18 transaction deadline.
Related Reading:Microsoft is selling Activision Blizzard’s cloud streaming rights to Ubisoft in exchange for UK regulators approving a deal
In response to the previous increase, the British CMA was concerned that Microsoft’s acquisition of Activision Blizzard could cause chaos in cloud gaming competition in the British market, so it has been slow to approve the acquisition.
In its proposal resubmitted in August, Microsoft promised to sell Activision Blizzard’s cloud game rights from the past for the next 15 years to an independent third-party player, Ubisoft.
In other words, due to the sale to Ubisoft, Microsoft cannot restrict the cloud streaming copyright of Activision Blizzard products, including “The Final Hour”, “Strike”, and “World of Warcraft”, which can only be put on the shelves . its own services, and cannot prevent competitors from owning them. In contrast, Ubisoft can provide content on any cloud game provider, including subscription platforms, as an independent third-party manufacturer.
The CMA believes that this change has removed the original concerns about this to a large extent. Microsoft also promised the CMA to enforce the sensitive terms of the deal with Ubisoft, ensuring the deal would satisfy the CMA’s remaining concerns.
The CMA said in a statement that the CMA’s position has not changed and that the merger can only proceed if cloud gaming can maintain space for competition, innovation and choice.
#finally #Britains #CMA #initially #agreed #Microsofts #acquisition #Activision #Blizzard #cloud #copyright #successfully #sold #Ubisoft #Gamers