Activision Blizzard, the developer of "Call of Duty," announced that it will sell broadcast rights to Ubisoft Entertainment in a new attempt to secure approval from the UK's Competition and Markets Authority for an agreement in which Microsoft is set to acquire Activision for $69 billion. Activision's stock rose by 1.1%, while Microsoft's stock increased by 0.7% earlier today in New York. Ubisoft's shares, listed in Paris, closed up by 8.8%, marking the largest gain in the Stoxx 600 European Index.
Microsoft had announced the largest deal in video game history in early 2022, but the UK's Competition and Markets Authority became an obstacle to the acquisition, citing concerns that the American tech giant would expand its control over the cloud gaming market. After months of negotiations, the Competition and Markets Authority stated today that it remains firm in its decision not to approve the deal, forcing Microsoft to introduce new terms.
Under these new terms, Microsoft will not be able to release some Activision games, such as "Overwatch" and "Diablo," exclusively on its owned cloud streaming service, Xbox Cloud Gaming, nor will it control the licensing terms of competing services exclusively. Instead, the French Ubisoft will receive the cloud streaming rights for existing Activision games on PC and consoles, as well as for any new games the company releases over the next fifteen years.
Microsoft stated today that it believes the new terms are "materially different" and anticipates that the Competition and Markets Authority will review them by October 18. The authority confirmed that it will assess the new deal as usual, with the first phase concluding on October 18. The two American companies have already extended the deadline for completing the deal, as the regulatory process has taken longer than expected.
