Activision Blizzard (ATVI) -) shares moved higher Tuesday after Microsoft (MSFT) -) tweaked the terms of its $69 billion takeover of the 'Call of Duty' to appease competition authorities in Britain.
Activision will sell the non-European streaming rights to all current and future video game releases to Ubisoft Entertainment, its France-based rival, following a move by Britain's Competition and Markets Authority to first block the Microsoft takeover, and then relent to a rare reconsideration of the $69 billion deal first unveiled in January of 2022.
The CMA, which had originally asked Microsoft to sell the 'Call of Duty' franchise to assuage competition concerns, will now conduct a so-called 'phase 1' probe into the restructured takeover, with a decision expected on October 18.
"This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments," said Britain's competition chief, Sarah Cardell. "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."
Activision shares were marked 1.05% higher in early Tuesday trading to change hands at $91.67 each, still south of the $95 price tag placed on it by Microsoft when the takeover was first agreed in January of last year.
Last month, both Microsoft and Activision agreed to extend their planned merger until October 18 -- now the CMA's revised decision deadline -- with Microsoft also agreed to pay an enhanced $4.5 billion termination fee if the deal is axed after September 15, up from the original breakup fee of $3 billion first agreed last year.
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