Microsoft has filed changes to its proposed takeover of the video game maker Activision Blizzard, in an attempt to win over the UK competition watchdog, which previously blocked the $69bn (£54bn) deal.
The Competition and Markets Authority (CMA) on Tuesday said it would investigate the new proposals, under which Microsoft will not acquire cloud rights outside Europe for existing Activision desktop computer and console games, or for new games released by the developer during the next 15 years.
The move revives the US tech company’s hopes of completing the takeover of the owner of hit titles such as Call of Duty, World of Warcraft and Candy Crush after the CMA in April blocked it, citing concerns it could allow the company to dominate the nascent cloud gaming market.
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However, the UK regulator had appeared increasingly isolated after its EU counterparts passed the deal and the US competition regulator lost a court request to block it.
The CMA said that, under the new deal presented to regulators, the rights to Activision’s games outside the European Economic Area will be divested to the rival developer Ubisoft prior to Microsoft’s acquisition.
Sarah Cardell, the CMA chief executive, said the deal did not yet have a “green light” to proceed and its goals had not changed.
“The CMA has today confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed,” she said.
“Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. As part of this new deal, Activision’s cloud streaming rights outside of the EEA will be sold to a rival, Ubisoft, who will be able to license out Activision’s content to any cloud gaming provider. This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services. We will now consider this deal under a new phase 1 investigation.
“This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments. Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”
This article was written by Jasper Jolly from The Guardian and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.