Microsoft has agreed to sell the cloud streaming rights for Activision Blizzard’s games to Ubisoft Entertainment, in a bid to overcome the British regulator’s opposition to its $69 billion takeover of the “Call of Duty” maker.
The Competition and Markets Authority (CMA) had blocked the deal, which was announced in early 2022, over concerns that Microsoft would dominate the emerging cloud gaming market by controlling Activision’s popular titles like “Overwatch” and “Diablo”.
Under the revised deal, Ubisoft will acquire the global cloud streaming rights for Activision’s existing and future games for the next 15 years, except in Europe where the deal was already cleared by Brussels. Ubisoft will also get a non-exclusive licence to offer Activision’s games in Europe.
Microsoft said it expected the new deal to be reviewed by the CMA by Oct. 18, after extending the deadline for the acquisition by three months.
he CMA said it would examine the new deal under its usual system and seek views from third parties. It said its goal was to ensure that the cloud gaming market continued to benefit from open and effective competition.
The deal marks a victory for the CMA, which has taken a tough stance on tech deals since Britain left the European Union. The U.S. Federal Trade Commission also opposed the deal, but failed to stop it. The European Union approved it after Microsoft agreed to license Activision’s games to other platforms.