Microsoft has presented a revised proposal to acquire Activision Blizzard following the UK competition regulator’s rejection of its initial $69 billion (£59 billion) offer. The UK competition watchdog’s rejection prompted Microsoft to reevaluate and adjust its bid.
Brad Smith, Microsoft’s UK head, noted that the new offer differs significantly from the previous one and expressed confidence in its approval.
The Competition and Markets Authority (CMA) in the UK will conduct a review of the modified deal. However, the CMA emphasized that this review is not an endorsement of the deal, stating that it doesn’t serve as a “green light.”
The CMA is scheduled to reach a decision on the revised proposal by October 18. Without the CMA’s approval, the global execution of the deal cannot proceed.
In the updated offer, Microsoft has opted not to acquire the rights to Activision’s existing or future cloud-stored games. This commitment, spanning a 15-year period, will not encompass Activision’s PC and console games within the European Economic Area.
Cloud-stored games enable players to purchase content on-demand, similar to streaming services like Netflix.
Microsoft’s initial acquisition deal with the maker of Call of Duty, formulated the previous year, was poised to become the largest in the history of the gaming industry. However, the deal encountered regulatory divisions worldwide, with concerns over potential anti-competitive effects.
The US Federal Trade Commission continues its efforts to thwart the deal within the United States, despite facing multiple court overrulings.
Conversely, the European Union and China have both signaled approval for the merger.
The UK, in contrast, announced intentions to block the deal in April, citing concerns over potential harm to innovation and choice within the burgeoning cloud gaming sector. Activision reacted strongly to this announcement, while Brad Smith, President of Microsoft UK, characterized it as a “dark day” for Microsoft’s four decades of operations in the country.
