CMA says original 69 bln Microsft purchase blocked
Activision to divest streaming rights to Ubisoft
Deal designed to enable Microsoft takeover to proceed

LONDON, Aug 22 Reuters Call of Duty maker Activision will sell its nonEuropean streaming rights to Ubisoft Entertainment to get the biggest deal yet in videogaming past British regulators, potential owner Microsoft said on Tuesday.

Britain39;s Competition and Markets Authority CMA is the only regulator to block Microsoft39;s 69 billion Activision deal, in a test of its postBrexit clout.

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 commercialise these rights to other cloud gaming services providers including to Microsoft itself.

Ubisoft39;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 Microsoft39;s reasoning, forcing the U.S. 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…