Microsoft reportedly considers selling cloud gaming rights in the UK to address concerns raised by the British regulatory authority and proceed with the acquisition of Activision Blizzard.
According to insiders cited by Bloomberg, the cloud gaming rights could potentially be sold to a telecommunications, gaming, or internet company. An investment firm has also shown interest in acquiring the cloud gaming rights. After the sale of these rights, it is anticipated that British gamers would no longer be able to access cloud gaming through Microsoft’s Game Pass Ultimate subscription. Instead, they would need to utilize the services of the company that acquired these rights.
Earlier, Microsoft revealed plans for a “small divestment,” without specifying the nature of the divestment. The company aims to address the concerns of the UK regulatory authority, the Competition and Markets Authority (CMA), in order to proceed with the acquisition. The CMA expressed fears that the acquisition of Activision Blizzard could disrupt competition in the cloud gaming market, leading to its initial blockage of the deal.
The CMA has indicated its willingness to engage in discussions with Microsoft regarding potential remedies. As a result, the ongoing appeal case between the two parties has been temporarily paused. However, if the CMA were to conduct a new investigation, it could potentially take months. Despite this, sources cited by Bloomberg suggest that Microsoft and Activision Blizzard expect the acquisition to be completed by Tuesday, July 18.
The CMA is not the only regulatory authority opposing the deal; the Federal Trade Commission (FTC) also seeks to block the acquisition. The FTC lost a legal battle on Tuesday, requesting a temporary block on the acquisition. Subsequently, the FTC appealed the decision and asked the court to block the acquisition until a ruling on the appeal is reached. However, the court rejected this request on Thursday. The FTC’s appeal is ongoing, but Microsoft is not required to await the outcome of the appeal. The company aims to complete the acquisition of Activision Blizzard by July 18.
