Microsoft has restructured its proposed acquisition of Activision Blizzard by agreeing to sell cloud streaming rights to publisher Ubisoft.

The revised deal has been submitted to the UK regulator in an effort to close the deal in the region.

“Today, we are taking another important step regarding this transaction,” Microsoft said in a statement. “To address the concerns about the impact of the proposed acquisition on cloud game streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a narrower set of rights.

“This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, a leading global game publisher. The rights will be in perpetuity.

“As a result of the agreement with Ubisoft, Microsoft believes its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022. As such, Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18.

“Under the restructured transaction, 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.”

The arrangement will give Ubisoft exclusive worldwide rights to stream Activision Blizzard games, except for non-exclusive rights to stream in the European Economic Area, for all existing and current Activision Blizzard games as well as those to be released over the next 15 years once Microsoft’s acquisition of Activision Blizzard is completed.

More to follow…