Ubisoft tops STOXX on Activision streaming rights deal

Activision Blizzard

22/08/2023 09:59

** Shares of French video game producer Ubisoft  UBIP.PA 
rise nearly 7% to the top of Europe's STOXX 600 index  .STOXX 
after the Assassin's Creed franchise maker signed the biggest
deal yet in video-gaming past British regulators
    ** Ubisoft said it is to acquire streaming rights for Call
of Duty and all other Activision Blizzard's  ATVI.O  titles
released over the next 15 years
    ** This transaction is to be enacted once Microsoft's
 MSFT.O  acquisition of Activision Blizzard is completed
    ** "In our view, Microsoft effectively told the world that
their preferred partner of choice in the nascent cloud gaming
market is Ubisoft," Jefferies says in a note
    ** "The release doesn't offer explicit financial
disclosures, but we are told that Ubisoft will compensate
Microsoft for the cloud streaming rights to Activision
Blizzard's games through a one-off payment and through a
market-based wholesale pricing mechanism, including an option
that supports pricing based on usage," it adds     
    ** The broker wonders which company will bear the financial
risk if demand is not there, and if Ubisoft should issue equity
to finance this transaction
    ** "Regardless of these questions, the news is clearly
positive", Jefferies adds
    ** Ubisoft shares are on track for their best day since
February
    

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))