Microsoft to offer more concessions to make its Activision Deal successful

November 30, 2022

2 min read

The acquisition of Activision Blizzard by Microsoft has come under intense scrutiny and criticism from lawmakers and authorities. Microsoft may have to make some compromises to complete the transaction. One such compromise, according to Reuters, might be a protracted license agreement for PlayStation.

According to the story, a “10-year license arrangement” with Sony would be Microsoft’s primary defense against European Commission authorities, according to a source. That was all the information the story provided, but it likely relates to the Call of Duty franchise, which has been the subject of controversy between Sony and Microsoft over exclusivity.

According to the New York Times, on November 11 Microsoft made a 10-year offer to Sony for Call of Duty on the PlayStation.

According to Stephane Dionnet, a partner at McDermott Will & Emery, Microsoft made a similar concession that could help the merger close. Given the size of the deal and the degree of authorities’ worries over not only Call of Duty but other components as well, it might not even be sufficient, according to Dinette.

The European Commission, the only regulatory authority that still needs to approve the transaction or not, will publish its judgment by April 11th. Microsoft continues to be dedicated to releasing Call of Duty titles on Xbox and PlayStation systems on the same day, a company representative told Reuters.

Several nations, including Saudi Arabia, Serbia, and Brazil, have previously accepted Microsoft’s $68.7 billion offer to purchase Activision Blizzard. According to the New York Times, the FTC of the United States is looking into the deal and has more than 10 staff members working on it. The FTC also reportedly interviewed Microsoft CEO Satya Nadella and Microsoft President Brad Smith earlier this year.

The FTC is “expected” to initiate an antitrust action over Microsoft’s proposed acquisition of Activision Blizzard, according to recent reports. According to a Politico article, Nadella and Bobby Kotick, CEO of Activision Blizzard, have previously been deposed as part of the FTC inquiry.