Microsoft, the tech titan who own Windows operation systems (OS) and XBOX game console and platform has bought Activision-Blizzard, the gaming service provider and developer who own Call of Duty (CoD), One of the leading 1st person shooter series and World of Warcraft (WoW), the largest online game of all time for $69 billion in January 2022.
This acquisition had triggered all regulator eyes on Microsoft, especially in US, EU and UK. The deal has been blocked by UK’s Competitive and Markets Authority (CMA) and gave a deadline at this 18 October for Microsoft and Activision to restructure the deal away from game monopoly.
The new deal will divert the cloud right of Activision and next new game to be released on both PC and console for next 15 years into the French rival hand, Ubisoft Entertainment. Ubisoft will buy those right at one-off wholesale price to compensate Microsoft loss.
This deal will force Microsoft to provide Activision game on any other OS and Ubisoft will have a right to sell the game as subscription service like Netflix subscription which Google’s Stadia failed to achieve year ago due to high price and not-responsive enough for cloud gaming.
This will give the player access to Activision games from multiple platforms, said by Sarah Cardell, the CMA’s CEO. Giving the multiple entrances, not necessary only that Microsoft own (Window & XBOX). If Microsoft would to extend its monopolistic power, That will force the players to also buy both Window or XBOX’s software, hardware and have to pay subscription fees to only what Microsoft own.
Microsoft (MSFT) has been trading in NASDAQ at $310 level in Jan 2022, fell to $221 in Nov 2022 and raised back to $320 level recently. While Activision Blizzard (ATVI) has been down at $57 before Jan 2022 after suffered from multiple scandals year long. But after the acquisition the price went back up to $80 and $90 level recently.
And lastly, Ubisoft Entertainment (UBI) traded in Paris Stock Exchange at 50 EUR in Jan 2022, drop to the lowest at 19 EUR and raised up to 29 EUR recently.
