Phil Spencer Says CMA Review Process Should be Completed Before October 18 Deadline - News
by William D'Angelo , posted on 22 August 2023 / 1,941 Views
Microsoft today announced in order to get to get its Activision Blizzard acquisition approved by the UK regulator, the Competition and Markets Authority (CMA), it will be selling the cloud gaming rights for current and new Activision Blizzard games to Ubisoft.
Microsoft Gaming CEO Phil Spencer in an internal memo to Microsoft employees says he expects CMA review process to be completed before the deadline on October 18.
Spencer also praised Sarah Bond, Microsoft’s corporate VP of gaming ecosystem at Xbox, for her "exceptional leadership throughout this process."
"Today, we’re taking another important step regarding our proposed acquisition of Activision Blizzard," said Spencer. "To address the concerns about the impact of the proposed acquisition on cloud game streaming raised previously by the UK Competition and Markets Authority, we are modifying the transaction to acquire a narrower set of rights.
"This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft. Under the modified transaction, Microsoft will obtain those cloud streaming rights for Activision Blizzard games necessary to fulfill our commitments to the European Commission and under our existing streaming agreements.
"We have notified the modified transaction to the CMA and we anticipate that the CMA review processes can be completed before the 90-day extension in our acquisition agreement with Activision Blizzard expires on October 18. You can read more about this important step in this blog post from our Vice Chair and President Brad Smith.
"Thank you to everyone who has devoted their time and energy in support of our acquisition. I would like to specifically call out Sarah Bond's exceptional leadership throughout this process.
"And as we continue to navigate the review process with the CMA, we remain as committed as ever to bringing the incredible benefits of the acquisition to players, creators, and the industry. Today’s developments move us one step closer to bringing the joy of gaming to everyone on the planet."
The acquisition has been approved in New Zealand, Turkey, South Africa, South Korea, China, the European Union, Ukraine, Japan, Chile, Brazil, Saudi Arabia, and Serbia. Microsoft also won its case against the FTC in the US, which was trying to block the deal.
Thanks, The Verge.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
