EU antitrust regulators are expected to give the green light to Microsoft’s acquisition of Activision, which is valued at $69 billion (approximately Rs. 5,65,480 crore). The approval is likely to occur next week, with May 15 being the probable date, according to sources familiar with the matter.
While the UK competition authority recently blocked the deal, citing concerns about potential competition limitations in cloud gaming, the European Commission is now set to clear the acquisition. This decision follows Microsoft’s commitment to licensing agreements with several cloud streaming rivals, including Nvidia, Boosteroid, and Ubitus from Ukraine and Japan respectively. These insider sources informed Reuters of the agreements in March.
If the acquisition goes through, Microsoft has arrangements in place to bring Activision’s popular game, Call of Duty, to gaming platforms such as Nintendo and Valve. The latter owns Steam, the largest video game distribution platform in the world.
The European Commission has set a deadline of May 22 for its final decision. Until then, they have declined to comment on the matter. Japan has already approved the takeover, while the US Federal Trade Commission is currently seeking to block it.
In the midst of these regulatory proceedings, Microsoft recently signed a 10-year contract with Nware, a Spanish cloud-gaming platform. This decision was prompted by the UK’s regulatory authority blocking the Activision deal. Brad Smith, the President of Microsoft, expressed his optimism about the emerging cloud segment in gaming and the impact of the new partnership with Nware.
“While it’s still early for the emerging cloud segment in gaming, this new partnership combined with our other recent commitments will make more popular games available on more cloud game streaming services than they are today,” Smith said.
Furthermore, Microsoft has signed similar deals with streaming platform owners, including Valve, Nvidia, and Boosteroid.
© Thomson Reuters 2023
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