Microsoft-Activision Deal Update: Call of Duty Maker To Sell Streaming Rights In Bid To Get Deal Over the Line
Key takeaways
- The U.K. has stood by its decision to block the $69 billion Microsoft-Activision deal
- For the deal to go ahead, Microsoft has agreed that Ubisoft will get the cloud streaming rights for Activision’s PC and console games
- All three companies saw a share price lift at the news
Remember the giant Microsoft-Activision merger that was all set to advance before the U.K. regulatory body blocked it? Well, they’ve stood by their decision, which has forced the two companies to restructure the deal. Under the new terms, a new winner has emerged — here’s what you need to know.
For those looking to invest in areas like artificial intelligence, robotics, or quantum computing, Q.ai’s Emerging Tech Kit is your golden ticket. Backed by an AI that sifts through market data to identify promising assets, this Kit reallocates its holdings as needed, providing you with a strategy to help grow your wealth in a volatile but rewarding sector.
Download Q.ai today for access to AI-powered investment strategies.
What’s the latest with the Microsoft-Activision deal?
On Tuesday this week, the U.K.’s Competition and Markets Authority (CMA) announced it had decided to stick with its original decision to block the deal, forcing Microsoft and Activision to pursue another path to ensure the $69 billion sale goes ahead.
The deal, which is set to be the biggest gaming acquisition in history, was first announced in early 2022 but has been met with regulatory hurdles at every step. While the EU approved the deal, the U.K. blocked the transaction.
Now, a workaround has been reached. Under the new deal, Microsoft won’t be able to release Activision games like Overwatch and Diablo just on Xbox Cloud Gaming or have exclusive control over the licensing rights for rival gaming platforms.
Instead, Ubisoft is now set to acquire the cloud streaming rights for Activision’s PC and console games, including new games for the next 15 years.
How did Wall Street react?
It was good news for the share prices, with Activision seeing a 1.1% lift to the stock and Microsoft enjoying a slight 0.7% bump. Microsoft originally agreed to pay Activision $95 per share, though the stock currently trades at around $91.
Ubisoft was the biggest winner of the three, closing 8.8% higher in Paris and becoming the biggest gainer for the day on the pan-European STOXX 600 index.
The deal is expected to be reviewed by the CMA on October 18, but if it still has concerns, that will set the acquisition back even further. The deal deadline has already been extended by three months.
The bottom line
Microsoft and Activision must now be feeling confident enough that the deal will pass to have set the acquisition deadline on the same day as the CMA’s decision. After a long and torturous process for all involved, it looks like we’ll finally see the merger go ahead.
In a world where technology is rapidly changing, it’s challenging to pick winners. Q.ai’s Emerging Tech Kit simplifies this for you. Using an advanced AI algorithm, it sifts through extensive data to forecast top-performing assets in the tech sector and adjusts your holdings accordingly, helping position you to seize opportunities in the evolving tech landscape.
Download Q.ai today for access to AI-powered investment strategies.
