Microsoft licensing offer likely to satisfy EU over Activision deal

Microsoft’s offer of licensing deals to rivals is likely to address EU antitrust concerns over its $69 billion (nearly Rs. 5,68,000 crore) acquisition of Activision, three people have said. close to the file, helping him to overcome a major obstacle.

Microsoft announced Activision’s bid in January last year, the biggest ever, to take on leaders Tencent and Sony in the booming video game market and venture into the metaverse. which is online virtual worlds where people can work, play and socialize.

The European Commission, which is due to rule on the deal by April 25, should not require Microsoft to sell assets to gain its approval, the sources said.

Activision shares jumped 1.8% in premarket trading after the Reuters report was published.

Microsoft Chairman Brad Smith said last month that the US software group was prepared to offer licensing deals to rivals to address antitrust concerns, but would not sell the lucrative Call of Duty franchise. ‘Activision.

Smith said it was neither feasible nor realistic to think that a game or slice of Activision could be cut out and separated from the rest.

The EU competition authority declined to comment.

Microsoft said it was “committed to delivering effective and easily applicable solutions that address the European Commission’s concerns.”

“Our long-term commitment to grant 100% equal access to Call of Duty to Sony, Steam, NVIDIA and others preserves the benefits of the agreement for gamers and developers and increases competition in the marketplace,” said a Microsoft spokesperson.

Last month, Microsoft announced that it had signed 10-year licensing agreements with Nintendo and Nvidia that will bring Call of Duty to their gaming platforms, with the agreements conditional on a green light for the deal with Activision.

The deal faces regulatory headwinds in Britain, where the UK competition agency has suggested Microsoft divest Call of Duty to address its concerns while the states’ Federal Trade Commission (FTC) United has asked a judge to block the deal.

© Thomson Reuters 2023