Microsoft Submits Revised Bid to Acquire Activision Blizzard

Following the rejection of its original $69 billion bid by the UK Competition and Markets Authority (CMA), Microsoft has presented a new offer to acquire gaming giant Activision Blizzard.

The CMA confirmed on Tuesday that the initial bid had been blocked, prompting Microsoft to propose a new deal for consideration. The CMA, however, emphasized that the new submission does not automatically indicate approval.

In the revised offer, Microsoft has made a significant commitment: it will not acquire the rights to Activision’s existing or future cloud-stored games.

This arrangement, spanning 15 years, excludes Activision’s PC and console games within the European Economic Area. Cloud-stored games enable users to purchase content on-demand, akin to popular streaming platforms like Netflix.

Also Read: Netflix Partners with Microsoft to Introduce Ad-Supported Plan

Rather than assuming control over all of Activision’s gaming content, including titles like Candy Crush, Microsoft intends to sell the content to Ubisoft, a competing video game publisher. Ubisoft will then have the authority to distribute Activision’s content to various cloud gaming service providers, including Microsoft itself.

The potential takeover of Activision Blizzard by Microsoft would mark a historic moment in the gaming industry, given its magnitude.

As the manufacturer of the Xbox gaming console, Microsoft’s interest in Activision primarily revolves around enhancing its Game Pass streaming service. Game Pass allows gamers to download content to their consoles and mobile devices.

The proposed deal has generated varied responses from regulators in the UK, Europe, and the US.

Concerns about potential anticompetitive consequences and its impact on the gaming landscape have been raised. Sony, a key rival, is among those expressing reservations, fearing that Microsoft’s ownership could limit the availability of major games for its PlayStation platform.

Sarah Cardell, CEO of the CMA, noted that Microsoft’s revised offer significantly deviates from its previous proposal.

She confirmed that the CMA would meticulously review the details of the restructured deal and assess its implications on competition.

Cardell reiterated the authority’s commitment to ensuring that the cloud gaming market remains competitive and conducive to innovation and choice.