Microsoft has launched a renewed bid to acquire 'Call of Duty' maker Activision Blizzard.
The corporation‘s initial $69 billion offer was halted by UK regulators, but a new twist in the buy-up saga could result in the largest deal in the gaming industry.
Microsoft president Brad Smith said it had made a new offer that he hailed as “substantially different”, and insisted it should be approved by watchdogs.
The UK Competition and Markets Authority (CMA) will review the deal – but said: “This is not a green light.”
The proposed merger, announced in January 2022, has faced mixed reactions from global regulators, with concerns raised about a possible monopoly on gamers’ choices.
The CMA is due to reach a verdict on Microsoft's revised proposition by 18 October, but without the regulator’s endorsement, the deal cannot proceed on a global scale.
Microsoft's hope is that the merger would revitalise demand for its Xbox console and gaming subscription offering.
Under the updated proposal, the company has agreed to cede the rights to stream Activision games from the cloud to video game publisher Ubisoft for 15 years.
Mr Smith said: "Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service - Xbox Cloud Gaming - or to exclusively control the licensing terms of Activision Blizzard games for rival services."
Microsoft's preliminary bid for Activision has gained approval in 40 countries, including the European Union bloc and China, but the US Federal Trade Commission has persistently attempted to halt the deal within America,
Courts have overturned the commission's decisions multiple times, but in April the CMA also obstructed the partnership, citing potential harm to innovation and choices for players within the rapidly growing cloud gaming sector.
Mr Smith branded the block “bad for Britain”.
It was also a blow for the UK government, which wants the country to become a tech powerhouse.
Sarah Cardell, chief executive of the CMA, said Microsoft’s new offer was “substantially different from what was put on the table previously”.
She added: “We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments.
"Our goal has not changed - any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”
