Microsoft signs 10-year contract with Spain's Nware after UK blocks Activision's bid

After Britain blocked the $69 billion buyout of "Call of Duty" maker Activision Blizzard (ATVI.O), Microsoft Corp (MSFT.O) announced on Friday it had signed a 10-year deal with Nware to deliver Xbox and Activision Blizzard games to the Spanish cloud-gaming platform. That move came just days after Britain blocked Microsoft's $69 billion buyout.

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Microsoft is said to have signed the agreement as part of its efforts to alleviate fears that its $400 billion purchase of Activision would impede competition in the cloud gaming market, which was cited by the Competition and Markets Authority as a reason for vetoing the biggest deal in the gaming industry.

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"It's still early in the evolution of the cloud gaming segment, but combined with our other recent commitments, this is likely to result in more popular games becoming available on more cloud gaming streaming services than they are today," said Microsoft's President Brad Smith in a statement.

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Xbox, which intends to appeal against CMA's decision, has signed similar contracts with the owners of streaming platforms like Valve Corp, Nvidia (NVDA.O), and Boosteroid, in addition to all the other streaming platforms.

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Sony - a vocal opponent of the deal - had also been offered a 10-year "Call of Duty" license in order to bring the multi-billion dollar franchise to Nintendo's Switch console, as part of the deal.

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On Wednesday, the CMA stated that Microsoft had an estimated 60%-70% share of the global cloud gaming market as well as a competitive advantage which included its ownership of Xbox, Windows, the PC operating system, and its cloud service provider Azure.

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In terms of technology deals, Activision's deal is the biggest that the regulator has ever blocked involving a technology company. By the 22nd of May, Europe will be able to make its decision regarding the deal. Also, the U.S. Federal Trade Commission is seeking to block the company's activities.

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During the U.S. premarket trading, Microsoft shares were slightly lower, while Activision shares were up 0.2% in premarket trading.