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Microsoft Offers Licensing Deals to Rivals to Secure Activision Blizzard Acquisition

Microsoft Offers Licensing Deals to Rivals to Secure Activision Blizzard Acquisition

Microsoft’s acquisition of Activision Blizzard has been met with much speculation and scrutiny, with concerns raised over the potential monopoly the tech giant could have on the gaming industry. While Microsoft has repeatedly stated that it has no intention of removing Call of Duty from PlayStation consoles, the company is still seeking approval from the European Union’s antitrust regulator.

To appease concerns over the acquisition, Microsoft has reportedly offered licensing deals to its rivals. The company’s president, Brad Smith, stated in a European Commission filing that Microsoft is prepared to offer these deals to lessen concerns over Microsoft owning the Call of Duty franchise outright, without having to sell it to complete the Activision Blizzard acquisition.

“We have stood behind our promise to bring Call of Duty to more gamers on more devices by entering into agreements to bring the game to the Nintendo console and cloud game streaming services offered by Nvidia, Boosteroid, and Ubitus,” said a spokesperson for Microsoft. “We are now backing up that promise with binding commitments to the European Commission, which will ensure that this deal benefits gamers into the future.”

Microsoft Offers Licensing Deals to Rivals to Secure Activision Blizzard Acquisition
Call of Duty

While Microsoft is expected to secure approval from the EU antitrust regulator, the ruling has been delayed until April 25. The delay has given Microsoft more time to assuage concerns from regulators and competitors alike. Sony, for one, has raised concerns over Microsoft’s acquisition, citing the exclusive release of Starfield on Xbox as evidence that Microsoft may not release multiplatform games from companies it acquires.

It remains to be seen how these licensing deals will affect the gaming industry as a whole, but it is clear that Microsoft is committed to allaying concerns and ensuring that gamers will benefit from the acquisition of Activision Blizzard.

This move by Microsoft to offer licensing deals to rivals in order to seek EU antitrust approval for its acquisition of Activision Blizzard is a clear indication of the company’s determination to complete the deal. Microsoft has previously said that it expects the acquisition to be completed in the second half of 2023, subject to regulatory approval.

The acquisition, if completed, will give Microsoft access to some of the most popular gaming franchises in the world, including Call of Duty, World of Warcraft, and Candy Crush. This would significantly bolster Microsoft’s gaming division, which has already seen tremendous growth in recent years with the acquisition of companies like Bethesda.

It remains to be seen how this move will be received by Microsoft’s rivals and the gaming community as a whole. Some may view it as a positive development, as it could lead to greater access to popular gaming franchises for players on a wider range of devices. Others may view it as a negative, as it could give Microsoft even more control over the gaming industry and lead to less competition.

Regardless of how one feels about the potential acquisition, it is clear that Microsoft is taking steps to ensure that it is able to complete the deal and reap the benefits that come with it. With the European Commission expected to rule on the matter in the coming weeks, it will be interesting to see how this all plays out.