Microsoft transfers Activision Blizzard rights to Ubisoft in bid to close deal

Our top story today is that Microsoft has restructured its proposed acquisition of Activision in a bid to address the UK CMA’s antitrust concerns. The restructured deal would see Activision Blizzard’s cloud streaming rights transferred to Ubisoft. Microsoft’s Vice Chair and President Brad Smith stated that the new acquisition proposal presents a “substantially different transaction under UK law” than the initial deal presented to UK regulators in 2022. The changes to the deal follow CMA statements in July that the regulator would be willing to consider a restructured acquisition if it addressed regulatory concerns. The licensing agreement will not apply to the EU where Microsoft agreed separate licensing terms. The European Commission is now examining the proposed changes to assess whether it impacts their approval of the acquisition in May this year.

In commercial tech news, Nvidia shares reached record highs on Tuesday buoyed by the company’s success in supplying hardware for AI projects. Nvidia's record-high share price of $481.87 was reached yesterday exceeding the company's previous record of $480.88 set in mid-July. An April report from CB Insights found that Nvidia holds over 95% of the AI GPU market. The rapid growth of the AI sector has propelled increases in Nvidia’s share price which has risen by more than 165% over the last year.

Read more below for a round-up of the other major policy stories currently shaping the tech sector.

A study by the BIS has concluded that cryptoassets have increased financial risks in developing economies. The BIS paper titled “Financial stability risks from cryptoassets in emerging market economies” stated that international regulatory cooperation was necessary to address these risks which relate to issues such as capital flow and bank disintermediation. Arguing that an outright ban would not be effective the report outlined a potential regulatory approach based on monitoring key data points and overseeing the areas in which cryptocurrency markets intersect with traditional financial markets and institutions.

Politico reported yesterday that the US FTC will investigate Qualcomm’s planned acquisition of Autotalks. The acquisition was announced in May with the EU Commission stating last week that regulatory approval would be required for the deal as the acquisition would “combine two of the main suppliers of V2X semiconductors (in the jurisdiction)”. The deal would expand Qualcomm’s portfolio of automotive semiconductor products.

Fintech company Curo Group is facing a US Consumer Financial Protection Bureau lawsuit over lending practices. The US CFPB alleged that Curo Group “induced struggling customers into a fee-harvesting and loan-churning scheme”. Rohit Chopra the director of the CFPB stated that financial services "sold as a financial lifeline was, in reality, pushing customers into financial quicksand." In a statement on the lawsuit, Curo Group stated that the alleged infractions took place at Heights Finance subsidiaries before Curo Group acquired the company in 2021.

Reporting by Nick Scott. For a longer read:

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