Microsoft’s New Call of Duty Deal Waits For UK Approval

According to the UK’s competition watchdog, Microsoft’s revised offer to buy the Call of Duty maker Activision Blizzard “opens the door”. The deal soon be cleared after this. The Competition Markets Authority (CMA) has mentioned that the updated deal appears to address concerns it has raised previously. The original $69bn (£59bn) deal has been blocked by UK regulators.

Earlier this year, the CMA stated their concerns over the deal, which might harm completion in cloud gaming in the UK. This was the reason the deal has been prevented Microsoft from taking on the entire thing. Afterwards, last month Microsoft submitted a restructured deal for the competition watchdog.

According to this revised offer, Microsoft has agreed to transfer the rights to stream Activision games from the cloud. For the last 15 years, French video game publisher Ubisoft had the rights to it. This means that streaming games like Call of Duty, Overwatch, and World of Warcraft will not come under Microsoft’s control.

CMA’s chief executive, Sarah Cardell, said: “The CMA’s position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved.” She made this statement on Friday. A consultation will be offered before the final decision has been taken by the authorities.

The latest update on this deal comes as a sigh of relief for the bosses of Microsoft and Activision. Both of the companies have taken too many risks, pushed harder, and jeopardized their reputation for this deal. Microsoft’s plan to take over Activision Blizzard is considered the largest takeover in the history of the gaming industry. The plan is meant to materialize in January 2022. Nonetheless, this controversial deal has received mixed responses from various regulators across the globe.

Yet, the deal was passed by the regulators in the European Union in May. Until recently, when the US competition watchdog witnessed an attempt to pause the purchase rejected by an appeals court. There were speculations that the deal might collapse earlier this year. And the fact that the deal is waiting for its approval is an achievement in itself.

In the latest announcement, CMA’s Ms. Cardell said, “It would have been far better… if Microsoft had put forward this restructure during our original investigation.” Adding more, “This case illustrates the costs, uncertainty, and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

However, Microsoft still is optimistic about the deal. They guess this merger will not just boost the demand for its Xbox console but also increase its gaming subscription business. The vice chairman and president Brad Smith has shared his enthusiasm for this achievement. 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 18 October deadline.”

The consultation will close on the 6th of October, without this approval, the game cannot launch on a global platform.