Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

After the 15 years are up, Ubisoft will no longer hold the cloud gaming rights for Activision’s content, but it is understood the regulator believes the time span will see rivals become established for the cloud gaming market to be more competitive. Despite concerns from rivals such as PlayStation-maker Sony, and regulators over competition in the gaming industry, Mr Spencer, who is chief executive of Microsoft Gaming, sought to reassure gamers. “The CMA has forced Microsoft to make concessions in the UK that other lexatrade review regulators have not. This is good news for the UK’s nascent gaming industry.” Under the re-worked deal, Microsoft has handed the rights to distribute Activision’s games on consoles and PCs over the cloud to French video game publisher Ubisoft. Microsoft has completed its $69bn (£56bn) takeover of Call of Duty maker Activision Blizzard in the gaming industry’s biggest ever deal. Sony strongly opposed this deal over concerns that big Activision titles like Call of Duty could become Xbox exclusives over time.

• “The CMA has forced Microsoft to make concessions in the UK that other regulators have not. This is good news for the UK’s nascent gaming industry.”
• Under the re-worked deal, Microsoft has handed the rights to distribute Activision’s games on consoles and PCs over the cloud to French video game publisher Ubisoft.
• But the CMA’s Ms Cardell said with the sale of Activision’s cloud streaming rights to Ubisoft, which makes Assassin’s Creed, “we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market”.
• Microsoft is paying cash for Activision at a premium price of $95 per share, meaning Mr Kotick, Activision’s outgoing chief executive, is set for a $400m payday, with chairman Brian Kelly earning $100m, based on the shares they own.
• “Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA,” said chief executive Sarah Cardell.
• Nicky Stewart, a consultant and former commercial director of cloud services provider UK Cloud, said the decision to approve the takeover was “great news for gamers”.

The deal with Activision also means Microsoft will own its studio solely purposed for mobile games, with hopes of expanding on the successes of titles such as Candy Crush. Under the restructured agreement, Microsoft has agreed to transfer the rights to stream Activision games from the cloud to top 10 automated software testing tools Ubisoft for 15 years outside the European Economic Area (EEA). But the CMA’s Ms Cardell said with the sale of Activision’s cloud streaming rights to Ubisoft, which makes Assassin’s Creed, “we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market”.

BBC News Services

“[It will lead to] more choice, more innovation, better value and improved gaming experiences and a healthy, competitive market,” said Ms Stewart, who is also a former head of ICT at the Cabinet Office government department. Nicky Stewart, a consultant and former commercial director of cloud services provider UK Cloud, said the decision to approve the takeover was “great news for gamers”. Microsoft is paying cash for Activision at a premium price of $95 per share, meaning thinkmarkets broker review Mr Kotick, Activision’s outgoing chief executive, is set for a $400m payday, with chairman Brian Kelly earning $100m, based on the shares they own. It has proved controversial and received a mixed response from regulators around the world, but has already been passed by regulators in the European Union. “Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA,” said chief executive Sarah Cardell.