To appease British regulators, Microsoft (MSFT) has agreed to submit a revised deal for its takeover of video game maker Activision Blizzard (ATVI).
The revised deal includes several concessions aimed at getting regulators in the United Kingdom to approve the $68 billion U.S. acquisition. U.K. regulators previously rejected the deal citing competition concerns.
However, the U.K.’s Competition and Markets Authority (CMA) said that Microsoft and Activision have now agreed to a restructured agreement that the regulator will consider.
The British competition regulator is expected to decide on the revised takeover by October 18.
Under terms of the new deal, Microsoft will not acquire cloud rights for existing Activision personal computer and console video games, or for new games released by Activision Blizzard over the next 15 years.
Instead, the cloud gaming rights will be divested to French video game publisher Ubisoft Entertainment (UBI) prior to the acquisition being completed.
The CMA has been among the toughest critics of the Activision Blizzard takeover, citing concerns that the deal will hurt competition in cloud gaming, which is viewed as the next frontier in the video game industry.
Cloud gaming offers subscription services that allow people to stream video games just as they do movies and television shows on platforms such as Netflix (NFLX).
The cloud rights divestment will allow Ubisoft to supply Activision’s games to all cloud gaming service providers, including Microsoft.
Ubisoft will also be able to license out Activision Blizzard content under different business models, including subscription services.
The restructured deal also requires Microsoft to provide versions of video games on operating systems other than Windows, which it owns outright.
Regulators have also expressed concerns that Microsoft could take popular Activision Blizzard titles such as “Call of Duty” and make them exclusive to its Xbox video game console.
In the U.S., the Federal Trade Commission (FTC) has waged a legal battle with Microsoft to get the Activision Blizzard takeover stopped.
However, in July, a judge blocked the FTC’s attempt to scuttle the deal, clearing the way for the acquisition to proceed in the U.S.
Microsoft’s stock has risen 16% over the last 12 months to trade at $321.88 U.S. per share. Activision Blizzard’s stock has gained 14% in the past year and currently trades at $90.72 U.S. a share.
