Microsoft’s Proposal Addresses UK Antitrust Concerns

by Warren Seah

According to the CMA’s statement on Friday, Microsoft’s proposed restructuring involves the sale of Activision’s cloud gaming rights to Ubisoft. This arrangement, as stated by the CMA, ensures that the important games’ cloud distribution remains in the hands of a robust independent supplier, Ubisoft, instead of being controlled by Microsoft.

Both Activision and Microsoft have expressed their encouragement in response to the CMA’s preliminary approval. Activision stated that it is optimistic about its future with Microsoft, while Microsoft reaffirmed its commitment to gaining approval. The deadline for Microsoft’s merger agreement with Activision has been extended and is set to expire on October 18.

Despite the progress made, the CMA still has some remaining concerns which Microsoft has proposed remedies for. The CMA is currently seeking consultation on these remedies and will make a final decision thereafter. The consultation period will conclude on October 6.

Microsoft initially announced its plan to acquire Activision in January 2022, with the deal valuing Activision at $69 billion after adjusting for net cash.

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