Don't know how the whole Microsoft-Activison deal came together and when it's finally closing off? We have all the latest information gathered for you!
It is no secret that Microsoft have been very keen on purchasing Activision Blizzard for a while now. However, after the Federal Trade Conference (FTC) blocked the way, the District Court in the Northern District of California rejected the restraining order. The judge decided that the FTC didn't show enough evidence to say for sure that the merger would seriously reduce competition.
Now the only obstacle remained the Competition and Markets Authority (CMA). In August 2023 the CMA formally rejected the whole deal, but allowed Microsoft to submit a restructured deal for review. And the new deal includes, the cloud gaming rights to all of Activison Blizzard's games will be carved out and sold separately to Ubisoft.
Microsoft-Activison: Comprimises For The Deal
Microsoft can still add Activision Blizzard's games to its cloud gaming service. However, even though they own the games, they will have to go to Ubisoft and bid for those rights like any of its competitors as well. This means Microsoft won't have full control and will have some limitations.
With the new deal being reviewed by the CMA the official decision is made, and they seem quite pleased with the outcome. The decision is still provisional, and the final approval still need to be worked out properly, but its official Microsoft will get a go by the CMA, before the extended deal deadline of October 18 as well.
Microsoft President Brad Smith said:
We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline.
If Microsoft would otherwise miss the extended deadline, they are obligated to pay Activison Blizzard a $3 billion breakup fee.
The determination of carving out the cloud gaming out of the deal is maybe surprising, but ultimately indicates the value Microsoft places in Activison Blizzard. Not only because of Call of Duty and Diablo 4, but potentially also because of the mobile gaming giant King, that has millions of players on a daily basis with its mobile game Candy Crush.