Microsoft Offers to Sell Rights to Call of Duty to Save $69B from Activision Deal

Part of Call of Duty creator's cloud streaming rights may be transferred to Ubisoft. Photo: Martin Meisner/AP

Microsoft has offered to offload some of Activision Blizzard's gaming business in a bid to win approval from a $69bn (£54bn) takeover competition watcher.

The tech giant said it will hand over cloud streaming control to the creator of Call of Duty. rights to PC and console games to video game publisher Ubisoft.

The offer, which will apply to countries outside the European Economic Area – the EU, Norway, Iceland and Liechtenstein – means that Ubisoft, not Microsoft, will decide which cloud streaming services games like World of Warcraft can use.

The plans apply to all existing Activision games and any games released within the next 15 years.

Sarah Cardell, executive director of the Competition and Markets Authority (CMA), said the regulator will consider deal. but warned: “It's not a green light.”

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The CMA blocked Microsoft's initial attempt to buy Activision in April, saying it would give the tech giant a stranglehold on the booming cloud gaming market.

The decision sparked Activision's claims that the UK was “closed for business”.

Microsoft has filed an appeal against the decision after US regulators failed to block the deal and EU regulators approved it.

On Tuesday, the CMA said it had permanently rejected the original deal. but regulators are now investigating Microsoft's new Ubisoft proposal.

According to the plans, Ubisoft will be able to license Activision games to other cloud streaming providers such as Nvidia's PlayStation Plus and GeForce Now.

The offer does not apply to the EEA as Microsoft has separate obligations under an agreement with the EU to accept deal.

The new plans address a key CMA issue that Microsoft will be able to release games like Call of Duty exclusively on its own game streaming service.

< p> However, the deal will still require CMA approval.

“We will carefully and objectively assess the details of the restructured deal and its impact on competition, including taking into account comments from third parties,” said Ms. Cardell.

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“Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and efficient competition that encourages innovation and choice.”

Microsoft President Brad Smith said the deal could be completed by October 18.