Secretive UK Investigation: Unveiling Microsoft’s Hidden Agendas Behind Activision's Intriguing Restructured Bid

Microsoft Offers to Sell Activision's Cloud Gaming Rights to Ubisoft

Microsoft has proposed selling Activision's cloud gaming rights to Ubisoft in order to comply with UK regulators. The UK Competition and Markets Authority (CMA) has launched an investigation into Microsoft's planned acquisition of Activision-Blizzard, which has been modified to address competition concerns.

The CMA had previously blocked Microsoft's acquisition bid, citing concerns over stifling innovation and choice in cloud gaming. In response, Microsoft and Activision restructured the deal. As part of the new agreement, Microsoft will not acquire the cloud rights for existing Activision PC and console games or new games released during the next 15 years.

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Under the restructured deal, these rights will be transferred to rival company Ubisoft before Microsoft's acquisition of Activision. Microsoft stated that this revised deal aims to address the CMA's concerns.

Ubisoft will compensate Microsoft for these cloud gaming rights through a one-time payment and a market-based wholesale pricing mechanism, according to the CMA.

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CMA Begins Investigation into Restructured Deal

The CMA has now initiated a phase one investigation into the restructured deal. CMA CEO Sarah Cardell emphasized that the goal remains the same - to ensure that the growing cloud gaming market benefits from open and effective competition that drives innovation and choice.

The CMA is currently seeking comments from interested parties regarding the potential impact of the newly structured deal on competition in the UK.

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Microsoft's Acquisition of Activision

Last year, Microsoft announced its intention to acquire the gaming company responsible for popular titles such as Call of Duty and Candy Crush. This acquisition was expected to position Microsoft as the world's third-largest video game company by revenue, following Tencent and Sony.

However, the companies faced regulatory scrutiny on both sides of the Atlantic following the announcement. While most regulators have given their approval, the UK investigation by the CMA continues.

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