February 21, 2024

Solid State Lighting Design

Find latest world news and headlines today based on politics, crime, entertainment, sports, lifestyle, technology and many more

EXCLUSIVE: Microsoft’s licensing offer is likely to satisfy the EU on Activision, sources say

EXCLUSIVE: Microsoft’s licensing offer is likely to satisfy the EU on Activision, sources say

BRUSSELS (Reuters) – Offering Microsoft (MSFT.O) licensing deals to rivals is likely to address the European Union’s antitrust concerns over its $69 billion acquisition of Activision (ATVI.O), helping it, three people familiar with the matter said. to overcome a major hurdle.

Microsoft announced Activision’s bid in January last year, its biggest ever, to take on leaders Tencent (0700.HK) and Sony (6758.T), in the burgeoning video game market and venture into the metaverse which is virtual online worlds where people can work. Play and socialize.

The European Commission, which is due to decide on the deal by April 25, is not expected to require Microsoft to sell the assets to win its approval, the people said.

Shares of Activision rose 1.8% in premarket trading after the Reuters story was published.

Microsoft chief Brad Smith said last month that the US software group was willing to offer competing licensing deals to address antitrust concerns but would not sell the lucrative “Call of Duty” franchise to Activision.

Latest updates

View 2 more stories

Smith said it wasn’t possible or realistic to think about the possibility of carving out one game or one segment of Activision and separating it from the rest.

The EU competition official declined to comment.

Microsoft said it was “committed to providing effective and easy-to-implement solutions that address the concerns of the European Commission”.

“Our commitment to giving 100% equal access to Call of Duty to Sony, Steam, NVIDIA and others preserves the benefits of the deal for gamers and developers and increases competition in the marketplace,” said a Microsoft spokesperson.

See also  Sony cuts prices for PS5 games and accessories ahead of Black Friday

Last month, Microsoft said it had signed 10-year licensing deals with Nintendo (7974.T) and Nvidia (NVDA.O) that will bring Call of Duty to their gaming platforms, with agreements conditional on the deal being greenlighted by Activision.

The deal faces regulatory headwinds in Britain, with Britain’s competition agency suggesting that Microsoft liquidate Call of Duty to address its concerns while the US Federal Trade Commission (FTC) asked a judge to block the deal.

Fu Yun Che’s report. Editing by Hugh Lawson, Ellen Hardcastle, and Jane Merriman

Our standards: Thomson Reuters Trust Principles.