Microsoft’s Purchase Of Activision Blizzard Clears Another Major Roadblock
The crazy week for Microsoft and Xbox continues, but this time it’s a bit of good news for the company. The UK CMA has provisionally approved Microsoft’s purchase of Activision Blizzard.
The approval comes after Microsoft made changes to the agreement in response to the original blocking by the CMA. These changes include Microsoft agreeing to “not purchase” cloud gaming rights currently held by Activision. Instead, those rights will be sold to Ubisoft.
“While the restructured deal is materially different to the previous transaction and substantially addresses most concerns, the CMA has limited residual concerns that certain provisions in the sale of Activision’s cloud streaming rights to Ubisoft could be circumvented, terminated, or not enforced,” the announcement reads.
“To address these concerns, Microsoft has offered remedies to ensure that the terms of the sale of Activision’s rights to Ubisoft are enforceable by the CMA. The CMA has provisionally concluded that this additional protection should resolve those residual concerns.”
Following the announcement from the UK regulator, Microsoft president and vice chair Brad Smith took to Twitter to voice his pleasure on the news.
“We are encouraged by this positive development in the CMA’s review process,” he said. “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline.”
With the provisional approval, the CMA is opening a consultation through October 6. After that time, a final decision will be made.