MSFT-ATVI: New MSFT Proposal Will Likely Pave a Path to Close the ATVI Deal
On Tuesday morning, MSFT announced new deal with French gaming company Ubisoft that it hopes will assuage concerns of the UK’s Competition and Markets Authority (CMA) and allow the company to complete its acquisition of ATVI. In the proposed agreement, MSFT will sell Ubisoft cloud streaming rights to all current and new PC and console games released for the next 15 years. Ubisoft will be able to license ATVI games to a range of different cloud streaming services—including MSFT’s.We believe this new proposal is likely to resolve the CMA’s concerns with the merger, and will pave a path for the deal to close. This outcome is consistent with the analysis we published earlier this year. With ATVI at a price of $91.66, as of August 22th, the market values the likelihood of the deal closing at 89%.
Microsoft is a technology company. The company develops and supports software, services, devices, and solutions. The company provides an array of services, including cloud-based solutions as well as solution support and consulting services. The company also delivers relevant online advertising. The company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other devices, and related accessories.
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