Microsoft
is knocking down the last obstacles to closing its $69 billion acquisition of
Activision Blizzard.
As regulatory objections get dealt with, Microsoft has reached a truce with its gaming rival
Sony.
Microsoft
(ticker: MSFT) said it signed a binding agreement to keep the Call of Duty videogame franchise on
Sony’s
(SONY) PlayStation consoles following the acquisition of
Activision Blizzard
(ATVI).
The acquiescence of Sony looks to have removed most lingering doubts about whether the deal will close. Activision shares were rising 4.5% to $94.10 in premarket trading on Monday, closing most of the remaining gap to the $95-a-share acquisition price. Microsoft shares were up 0.6%.
Sony confirmed to The Wall Street Journal that the deal to keep Call of Duty on PlayStation will last 10 years, in line with Microsoft’s agreements with other companies such as
Nintendo
(7974.JAPAN).
“Even after we cross the finish line for this deal’s approval, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before,” tweeted Microsoft President Brad Smith.
Much of the initial attention on the Microsoft-Activision deal revolved around the future of Call of Duty —one of the most popular videogame franchises of all time. But the deal with Sony still leaves one obstacle to the acquisition.
The U.K.’s Competition and Markets Authority is the last major regulator that could still block the deal. It initially blocked it over concerns about the effects on the nascent cloud-gaming business, which allows users to stream videogames via a variety of devices. The CMA has pushed the deadline for its final decision to Aug. 29 as it considers a submission from Microsoft.
The details of that submission haven’t been made public, but Bloomberg has reported that Microsoft and Activision would consider relinquishing some control of their U.K. cloud-gaming business to address the CMA’s concerns, potentially selling cloud-based market rights to another company.
Write to Adam Clark at [email protected]
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