Microsoft's $69 billion acquisition of Activision Blizzard
Microsoft's $69 billion acquisition of Activision Blizzard looks set to face regulatory hurdles in the UK, as the Competition and Markets Authority (CMA) says it has concerns about the cloud gaming market, and Microsoft makes a new offer to try and get the deal approved.
The UK CMA has already blocked the deal, saying it would "reduce competition and choice for consumers" in the cloud gaming market. The EU Commission has already approved the deal, but the US Federal Trade Commission failed to block it in court after it restructured the deal. Now, Microsoft has made a new offer, transferring cloud gaming rights to Ubisoft for 15 years.
The UK CMA says it will review the new offer, and deliver a decision by October 18, the date by which the deal must close. However, the UK government, along with the pro-business Conservative party, oppose the CMA's decision, saying it will harm Britain as a global hub for video game development.
"Nothing substantially changes," Activision Blizzard president Bobby Kotick says of the rejigging. "We will continue to operate as an independent company and pursue our pro-consumer, pro-competitive, and pro-innovation agenda."
The CMA says it will assess the impact of the restructured deal on competition and the cloud gaming market.
Microsoft remains committed to bringing the benefits of the acquisition to players and the industry. "We are excited about the possibilities and the potential to bring together world-class talent, technology, and resources to create gaming experiences that will delight millions of players everywhere," the company says.
The new offer is seen as positive for players and the growth of the cloud gaming market.
"The acquisition of Activision Blizzard will vastly increase Microsoft's cloud gaming resources, allowing it to become a true competitor to Amazon and Google," says ShiftyShabu, a member of the Windows and XboxGaming subreddit.
"The fact that Microsoft is transferring some of the Activision Blizzard cloud gaming licenses to Ubisoft is very positive for players, since it will prevent exclusive release of Activision Blizzard games on its own cloud service."
"The deal has been restructured to prevent exclusivity, which is great for consumers," another user, Grogzilla, says. "Microsoft remains committed to bringing the benefits of the acquisition to players and the industry."
While the deal remains in regulatory limbo, Microsoft has announced its new Xbox Game Pass Ultimate subscription plan, which gives you access to all of the company's games, including those from Microsoft Studios, Xbox Game Studios, and, once the acquisition is complete, Activision Blizzard.
