Microsoft presented on Tuesday a new offer for the acquisition of Activision Blizzard, offering a series of concessions after UK regulators rejected his initial proposal. The US tech giant first proposed a $69 billion acquisition of Activision in January 2022, but has since faced regulatory challenges in the US, Europe and the UK.
On Tuesday, the UK Markets and Competition Authority confirmed that it had blocked the original deal. However, he pointed out that Microsoft and Activision they have reached a new restructured agreement, which the authority will investigate with a decision deadline of October 18.
The Redmond, Wash.-based tech giant anticipates that the review can be completed before this date, the president of MicrosoftBrad Smith.
In the restructured agreement, Microsoft You will not acquire cloud rights for existing games from Activision in pc and console, nor for the new games released by Activision for the next 15 years, according to the authority. Instead, these rights will be transferred to the French video game publisher Ubisoft Entertainment before the acquisition of Activision by Microsoftadded the authority.
The actions of Ubisoft they rose more than 9% in operations in Europe. The actions of Activision rose 1%, while Microsoft rose less than 1% in early US trading. The authority has been the harshest critic of the acquisition, citing concerns that the deal would hamper competition in the nascent cloud gaming market.
Cloud gaming is considered to be the next frontier in the industry, offering subscription services that allow people to stream games the same way they stream movies or shows on Netflix. It could even eliminate the need for expensive consoles, as users would play the games on pcmobile devices and televisions.
Regulators previously argued that Microsoft could also carry key sets of Activisionas call of dutyand make them exclusive to Xbox and other platforms Microsoft.
Authorities in the European Union were the first major regulators to approve the deal in May. To cross that line, Microsoft offered concessions, such as offering royalty-free licenses to cloud gaming platforms to stream games from Activision if a consumer has purchased them.
The authority rejected similar measures at the time, as it considered that they would allow Microsoft “set the terms and conditions of this market for the next ten years.”
In the United States, the Federal Trade Commission was waging a legal battle with Microsoft to try to stop the acquisition of Activision. In July, a judge blocked the attempt by the FTC to do so, paving the way for the agreement to continue in the United States.
Hours later, the British authority said it was “ready to consider any proposal for Microsoft to restructure the transaction” and alleviate the concerns of the regulator.
The new proposal of Microsoft for the United Kingdom The restructured agreement and the transfer of rights in the cloud to Ubisoft are intended to provide an independent third party content provider with the ability to deliver game content from Activision to all cloud gaming service providers, including Microsoft.
Ubisoft may license content from Activision under different business models, including subscription services.
The agreement would also require that Microsoft provide versions of games on operating systems other than Windows, which is owned by the company.
“Microsoft has notified a new and restructured agreement, which is materially different from what was initially proposed,” said Sarah Cardell, CEO of the authority, in a statement.
“As part of this new agreement, the rights of transmission in the cloud of Activision outside the European Economic Area will be sold to a competitor, Ubisoftwho may license the content of Activision to any cloud gaming service provider. This will allow players to access the games of Activision in different ways, including cloud gaming subscription services.”
Cardell stressed that this is not a sign of approval for the deal.
“This is not a green light. We will carefully and objectively analyze the details of the restructured agreement and its impact on competition, even in light of third-party feedback.”
For his part, Microsoft will be compensated for its assignment to Ubisoft “through a one-time payment and through a market-based wholesale pricing mechanism, including an option that supports usage-based pricing. It will also give the opportunity to Ubisoft to offer games Activision Blizzard to cloud gaming services that work with non-Windows operating systems,” Smith said Tuesday.
“We are dedicated to delivering incredible experiences to our players wherever they choose to play,” said Chris Early, senior vice president of strategic partnerships and business development at Ubisoft on Tuesday. “Today’s deal will provide gamers with even more opportunities to access and enjoy some of the biggest brands in gaming.”
Via: CNBC
Editor’s note: Oh! My suspicions that Ubisoft will be the next studio to be absorbed by Microsoft They seem to gain strength.
#Microsoft #delivers #proposal #acquire #Activision