The CMA may soon accept Microsoft’s acquisition of Activision Blizzard, according to a BBC story. As of September 22, the CMA has now given its initial approval to the Activision Blizzard acquisition by Microsoft, stating that its worries regarding the buyout appear to be addressed by Microsoft’s reworked plan for the acquisition.
The CMA initially opposed Microsoft’s agreement because of its reservations over cloud gaming. However, Microsoft has adjusted and decided to let Ubisoft purchase the cloud gaming rights for Activision games. who can then distribute them on platforms like PlayStation and PC in addition to returning the license to Microsoft for the Xbox. Additionally, Ubisoft will hold the rights for 15 years.
This and other changes have improved Microsoft’s proposal. From here, it appears that things might be resolved rather shortly. Having said that, it’s crucial to understand that nothing is finalized just yet.
Activision Blizzard’s acquisition by Microsoft has received preliminary approval from the CMA
Don’t be misled. This is wonderful news for Microsoft and all parties involved in the transaction. However, it’s crucial to remember that this is merely a preliminary approval. Even still, it’s encouraging that the CMA won’t have any additional reservations about the acquisition.
Microsoft has until October 18 to seal the transaction. And given the CMA’s initial ruling, that seems plausible. The CMA will try to compile feedback from members of the public and the gaming sector before making a final judgment. The CMA hasn’t specified a deadline for issuing a final determination, though. Even if it is final permission and it is received by the deadline, it won’t happen for weeks.
CMA Chief Executive Sarah Cardell claims that despite the initial denial and the current provisional permission, the CMA has remained “consistent in its position” regarding the transaction. Noting that advancement required protection of cloud gaming rights. Cardell adds, “Microsoft should have proposed this restructuring during our initial investigation. That would have been far better.”
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