The UK’s Competitors and Markets Authority (CMA) has given preliminary approval for Microsoft to proceed with its $69 billion Activision Blizzard deal. The CMA had initially blocked the acquisition over cloud gaming issues, however Microsoft not too long ago restructured the deal to switch cloud gaming rights for present and new Activision Blizzard video games to Ubisoft.
“The CMA considers that the restructured deal makes essential modifications that considerably tackle the issues it set out in relation to the unique transaction earlier this yr,” the CMA mentioned in a press launch, and “opens the door to the deal being cleared.”
That is only a preliminary determination, forward of ultimate approval. The CMA says it has now opened a session to achieve third-party suggestions on Microsoft’s proposed treatments, till October sixth. A last determination is predicted earlier than the prolonged October 18th deadline.
A last determination is predicted earlier than the prolonged October 18th deadline
The session interval is supposed to deal with just a few remaining issues that the CMA has with the deal. “Whereas the CMA has recognized restricted residual issues with the brand new deal, Microsoft has put ahead treatments which the CMA has provisionally concluded ought to tackle these points.”
Microsoft is understandably optimistic in regards to the determination. “We offered options that we consider totally tackle the CMA’s remaining issues associated to cloud recreation streaming, and we’ll proceed to work towards incomes approval to shut previous to the October 18 deadline,” mentioned Microsoft vice chair and president Brad Smith on X (previously Twitter.)
Activision Blizzard can be happy with the CMA’s response. “This can be a important milestone for the merger and a testomony to our solutions-oriented work with regulators,” mentioned Activision Blizzard CEO Bobby Kotick in a statement sent to employees. “I stay optimistic as we proceed the journey towards completion and am very grateful to every of you on your dedication and focus all through this course of.”
The UK is the ultimate regulatory hurdle for Microsoft’s big deal.