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LurkerJ on 14 July 2023
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Report: Microsoft Considering Selling UK Cloud Gaming Rights to Allow Activision Deal to Close - News

Microsoft and Activision Blizzard are considering giving up some control over cloud-gaming in the UK to appease the the UK regulator, the Competition and Markets Authority (CMA), according to people familiar with the matter who spoke with Bloomberg.

It is reported Microsoft might be willing to sell its cloud gaming rights in the UK to a telecommunications, gaming or internet-based computing company. One person said a private equity company might be interested.

The sources said Microsoft and Activision Blizzard think it is possible to close the deal before the July 18 deadline.

The Competition and Markets Authority (CMA) in the UK in April blocked Microsoft's Activision Blizzard acquisition, however, Microsoft and Activision Blizzard has appealed the decision. The hearings for the appeal were set to start on July 24, however, the CMA and Microsoft have decided to pause litigation to work out a new deal.

CMA media officer Billy Proudlock yesterday said discussions with Microsoft and Activision Blizzard are "at an early stage" and the two companies are considering how the transaction could be modified. 

The reason the CMA blocked the deal in April was due to concerns with cloud gaming. The CMA is concerned the "deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come."

The CMA states at the time "Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service."

https://www.vgchartz.com/article/457835/report-microsoft-considering-selling-uk-cloud-gaming-rights-to-allow-activision-deal-to-close/

Yeah.... not sure why the CMA is entertaining this now at this stage, I'd say the lobbied politicians pressure must have played a big role, this is definitely not an offer the CMA can't refuse.