Microsoft is set to win EU nod on Activision with licensing offer to secure EU antitrust approval as per a Reuters report. This is in continuation with the Microsoft $69 billion acquisition proposal of Activision Blizzard whose decision will be taken by the European Commission by April 25.
The announcement of this acquisition was made by Microsoft in January last year. The idea behind this was to put in some competition against the leaders in the video gaming market especially the players like Sony and Tencent. The ultimate motive is said to be its plan of creating a metaverse where people can socialize with work as well as play.
Last month, Microsoft President Brad Smith stated that the US software company was prepared to negotiate licensing deals with rivals in order to allay antitrust concerns, but it would not sell Activision’s lucrative “Call of Duty” franchise. He also iterated it was not feasible or realistic to think that one game or one slice of Activision can be carved out and separated from the rest, the report stated.
Smith also said in December last year that a similar 10-year deal is on the table if Sony wants to sign. He tweeted, “Our acquisition will bring Call of Duty to more gamers and more platforms than ever before. That’s good for competition and good for consumers. Thank you @Nintendo. Any day @Sony wants to sit down and talk, we’ll be happy to hammer out a 10-year deal for PlayStation as well.”
According to the Reuters report, Microsoft said it was “committed to offering effective and easily enforceable solutions that address the European Commission’s concerns.”
The report further stated what a Microsoft spokesperson said, “Our commitment to grant long term 100% equal access to Call of Duty to Sony, Steam, NVIDIA and others preserves the deal’s benefits to gamers and developers and increases competition in the market,”
This news has put a great impact on the money market as well with Activision shares, which jumped 1.8% in pre-market trading after the Reuters’ story was published, were up 2.6% in late trade.
Source: Reuters Report