Microsoft, Activision to Sell Streaming to Secure Biggest Video Gaming Deal

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuentes/File Photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuentes/File Photo
TT
20

Microsoft, Activision to Sell Streaming to Secure Biggest Video Gaming Deal

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuentes/File Photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuentes/File Photo

"Call of Duty" maker Activision will sell its non-European streaming rights to Ubisoft Entertainment to get the biggest deal yet in video-gaming past British regulators, potential owner Microsoft said on Tuesday.
Britain's Competition and Markets Authority (CMA) is the only regulator to block Microsoft's $69 billion Activision deal, in a test of its post-Brexit clout, Reuters said.
Microsoft said on Tuesday it believed its new proposal was a "substantially different transaction" and that it expected the CMA review process to be completed before Oct. 18.
The CMA in a statement said the revised transaction would "allow Ubisoft to commercialize these rights to other cloud gaming services providers (including to Microsoft itself)".
Ubisoft's shares listed in Paris were up 6.5% at 0723 GMT, making them the top gainer on the pan European STOXX 600 index.
The British regulator in July took the rare step of reopening its investigation into the deal after Microsoft said commitments accepted by the European Union and a new agreement with Sony constituted a material change.
But it said on Tuesday it did not accept Microsoft's reasoning, forcing the US giant to come back with a new deal to address its concerns over competition in the nascent cloud streaming market.
Under the new terms, Microsoft will not be able 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 new transaction deals with streaming rights outside the European Economic Area, reflecting the fact that Brussels had already approved the deal.
Ubisoft will, however, receive a non-exclusive license for Activision's European gaming rights too, enabling the French group to also stream the rights in the EU.



TikTok Says to Increase Investment in Britain

Around half the UK population, more than 30 million people, use TikTok each month. Kirill KUDRYAVTSEV / AFP
Around half the UK population, more than 30 million people, use TikTok each month. Kirill KUDRYAVTSEV / AFP
TT
20

TikTok Says to Increase Investment in Britain

Around half the UK population, more than 30 million people, use TikTok each month. Kirill KUDRYAVTSEV / AFP
Around half the UK population, more than 30 million people, use TikTok each month. Kirill KUDRYAVTSEV / AFP

TikTok plans to raise its investment in the UK, its biggest community in Europe, with the creation of 500 more jobs, the Chinese-owned social media giant announced Monday.

The news coincided with the start of London's Tech Week, which sees British Prime Minister Keir Starmer welcoming some of sector's biggest firms.

"TikTok's UK workforce will grow to 3,000 this year with the addition of more than 500 jobs," the company said in a statement.

It added that it was investing in a new London office, set to open next year, and whose size will dwarf its current UK head office.

It will take TikTok's investment in UK infrastructure to around £140 million ($190 million), the group said.

Around half the UK population, more than 30 million people, use TikTok each month, making it the platform's "largest user-community in Europe", the statement added.

"Whether through direct investment in jobs and innovation, or the wider economic contribution from millions of British businesses on TikTok, we're pleased to be increasing our investment and presence here in the UK," said Adam Presser, director of TikTok UK and global head of operations and trust and safety.

TikTok has been in the crosshairs of Western governments for years over fears personal data could be used by China for espionage or propaganda purposes.

"What underpins our continued growth is our deep commitment to safety and to creating an enjoyable and secure digital space to sustainably support creators, entrepreneurs and the wider economy, which is why we also invest significantly in safety," Presser added Monday.