Originally published at: Microsoft has proposed a restructured proposal to the CMA for the Activision Blizzard acquisition - Ubisoft to acquire Cloud Streaming rights - XboxEra
What you need to know
- Ubisoft will have the cloud gaming rights of all Activision-Blizzard PC and console games currently released and releasing in the next 15 years
- Microsoft won’t have full control over the cloud licensing for Activision Blizzard PC and console games
- The streaming rights for these games will be in perpetuity
- The new investigation will have a deadline of October 18th
A new step towards regulatory approval has been made in the UK. Today Microsoft announced a restrucured proposal to the CMA for their Activision Blizzard acquisition
In this new proposal Ubisoft will acquire the rights for all current console and PC Activision Blizzard games and all console and PC Activision Blizzard games releasing in the next 15 years. The rights will be held in perpetuity. This means Ubisoft will hold the streaming rights for these titles forever.
Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law. This new proposal also honors our prior commercial and regulatory commitments. Read more here: https://t.co/t0UBcouTP9
— Brad Smith (@BradSmi) August 22, 2023
The Microsoft press release reads as following:
”As a result of the agreement with Ubisoft, Microsoft believes its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022. As such, Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18.”
”Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service—Xbox Cloud Gaming – or to exclusively control the licensing terms of Activision Blizzard games for rival services.The agreement provides Ubisoft with a unique opportunity to commercialize the distribution of games via cloud streaming. The agreement will enable Ubisoft to innovate and encourage different business models in the licensing and pricing of these games on cloud streaming services worldwide. Ubisoft will compensate Microsoft for the cloud streaming rights to Activision Blizzard’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage. It will also give Ubisoft the opportunity to offer Activision Blizzard’s games to cloud gaming services running non-Windows operating systems.”
”Of importance, Microsoft’s obligations to provide cloud streaming rights in the European Economic Area remain in place, in full compliance with Microsoft’s commitments to the European Commission. The agreement with Ubisoft has been structured so that Microsoft will still acquire the rights needed to honor fully its legal obligations under its commitments to the European Commission, as well as its existing contractual obligations to other cloud game streaming providers, including Nvidia, Boosteroid, Ubitus, and Nware. Microsoft is engaging closely with the European Commission to support the EC’s assessment of the agreement and confirmation that the commitments remain undisturbed.”
Microsoft
The Ubisoft+ lineup is expanding!
We're excited to announce a new agreement that will bring Activision Blizzard games to Ubisoft+ via streaming upon the completion of Microsoft’s acquisition of Activision Blizzard!
We’ll also be licensing the games to a range of cloud streaming… pic.twitter.com/sZTnEFJedC
— Ubisoft (@Ubisoft) August 22, 2023