Microsoft And Activision Blizzard Restructure Admissions To UK CMA

Microsoft and Activision change acquisition proposals (photo: Blizzard)

JAKARTA - Since January 2022 until now, Microsoft's acquisition of Activision Blizzard has not yet been completed, as it is hampered by the blessing of Britain's Competition and Markets Authority (CMA).

Well, to address concerns about the impact of the acquisition proposal on the UK's CMA-submitted cloud game streaming, Microsoft has finally taken a step forward to restructure this acquisition transaction.

This includes implementing an effective agreement at the close of a merger of companies that transfer cloud streaming rights to all PC games and current and new Activision Blizzard consoles released over the next 15 years to Ubisoft Entertainment SA.

Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law. This new proposal also honors our prior commercial and regulatory commitments. Read more here: https://t.co/t0UBcouTP9

— Brad Smith (@BradSmi) August 22, 2023

Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law. This new proposal also honors our prior commercial and regulatory commitments. Read more here: https://t.co/t0UBcouTP9

With this restructuring, Microsoft believes the acquisition proposed against Activision Blizzard is very much different from the proposal they first submitted in 2022.

The new proposal notes that Microsoft will not be able to release Activision Blizzard exclusively on its cloud streaming service, or exclusively control Activision Blizzard's gaming licensing requirements for competing services.

"The agreement provides Ubisoft with a unique opportunity to commercialize game distribution via streaming cloud," wrote Microsoft Deputy Chair and President Brad Smith in a statement.

That way, Ubisoft will still be able to innovate and encourage different business models in licensing and setting the prices of these games on cloud streaming services around the world.

Ubisoft will also compensate Microsoft for cloud streaming rights for the Activision Blizzard game through one-time payments and through a market-based wholesale price mechanism, including options that support usage-based prices.

"Most importantly, Microsoft's obligation to provide cloud streaming rights in the European Economic Region remains in effect, in full with Microsoft's commitment to the European Commission," Smith added.

Microsoft has notified CMA's restructured transactions, therefore Microsoft hopes that the CMA review process can be completed before a 90-day extension of the acquisition agreement with Activision Blizzard ends on October 18.

"We believe that this development has a positive impact on players, the development of the cloud game streaming market, and for the growth of our industry," he concluded.