The UK’s CMA Provisionally Approves Microsoft’s Restructured Activision Blizzard Deal

Microsoft’s proposed acquisition of Activision Blizzard is about to overcome its last roadblock. Today, the UK’s Competition and Markets Authority (CMA) provisionally approved Microsoft’s restructured deal, which will transfer cloud gaming rights for Activision Blizzard games to Ubisoft.

The CMA originally blocked the deal in April over concerns about the cloud gaming market. The UK regulator believed that Microsoft getting control of Activision Blizzard games could help the company to reinforce its already strong position, and Microsoft responded by signing cloud licensing deals with competing platforms such as Nvidia GeForce Now, Boosteroid, and Ubitus, but that wasn’t enough.

In August, Microsoft announced a restructured deal where it would sell Activision Blizzard cloud streaming rights to Ubisoft over the next 15 years. As part of the transaction, Ubisoft will be able to add Activision Blizzard games to its own Ubisoft+ game subscription service, and the publisher will also be able to offer these games to other cloud gaming services.

The CMA still said that it has “identified limited residual concerns with the new deal,” but that Microsoft has already offered remedies to ensure that the terms of the sale of Activision’s cloud gaming rights to Ubisoft will be enforceable by the CMA. The UK regulator has now opened a consultation to determine if Microsoft’s proposed remedies are good enough, and it has until October 6 to share its conclusions.

“Unlike the remedies the CMA previously rejected, Ubisoft will be free to offer Activision’s games both directly to consumers and to all cloud gaming service providers however it chooses, including for buy-to-play or multigame subscription services, or any new model for providing content that might emerge as the market develops,” the CMA explained. “The deal with Ubisoft also requires Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested, addressing the other main shortcoming with the previous remedies package.”

In a statement shared on X/Twitter, Microsoft President Brad Smith said that the company is “encouraged by this positive development in the CMA’s review process.” The exec also said that Microsoft will continue to work with the CMA, which has an October 18 deadline to either approve or block the deal. With today’s preliminary approval, however, it seems that Microsoft will finally be able to complete the $68 billion acquisition.