© Reuters. Will Microsoft (MSFT.US) provide Sony (SONY.US) with a 10-year license to Call of Duty to acquire Activision Blizzard (ATVI.US)?
Zhitong Finance APP has learned that, according to a document released by the regulatory agency, Microsoft (MSFT.US) stated that it will license Activision Blizzard (ATVI.US)’s “Call of Duty” IP to Sony (SONY.US) for 10 years. With the move, Microsoft hopes to address concerns from U.K. regulators about its $69 billion acquisition of Activision Blizzard.
Just last month, Microsoft signed a similar agreement with Nvidia’s (NVDA.US) GeForce Now gaming platform, and also reached a 10-year agreement with Nintendo, but the final result still depends on Microsoft’s controversial acquisition. Can it be approved. Microsoft President Brad Smith has previously said he hoped rivals who strongly opposed the acquisition would consider the same deal. Sony could offer a similar 10-year deal at any time if they were willing to sit down and talk.
Britain’s Competition and Markets Authority (CMA) said in February that Microsoft’s deal to buy Activision Blizzard could reduce competition between Microsoft’s Xbox and Sony’s PlayStation and kill competition in cloud gaming. The agency said Microsoft may need to take structural remedial measures to allay its concerns, including divesting businesses related to Call of Duty.
Responding to the CMA’s findings, Microsoft said the package of remedies it will provide protects all Call of Duty players in the UK and provides substantial benefits to consumers and developers. Microsoft also added that it believes the company’s proposed remedies already meet the criteria for behavioral remedies considered by the CMA.
In the documents disclosed by the CMA, Microsoft stated that they have licensed Activision Blizzard’s game “Call of Duty” IP to Sony for 10 years, promising to “focus on release dates, content, features, upgrades, quality and playability.” Sony offers the same treatment as the Xbox platform.”
However, Sony did not agree. Sony said the only way to maintain competition in the console and cloud gaming space was to block the deal, or for Microsoft to accept structural remedies, such as selling Call of Duty.
The deal is expected to win approval from European antitrust authorities after Microsoft offered licensing deals to rivals, people familiar with the matter said earlier this month, helping Microsoft clear a major hurdle in its acquisition path. The CMA is due to rule on the deal on February 22.
