Microsoft’s Activision Blizzard deal gets preliminary approval from the UK regulator. The competition watchdog has just stated that the revised deal that was reportedly offered by Microsoft appears to address its competition concerns. A final ruling is however expected to come before the 18th of October.
Microsoft’s Activision Blizzard Deal Gets Preliminary Approval
The Competition and Markets Authority (CMA) of the UK has given preliminary approval for Microsoft to go ahead with its $69 billion Activision Blizzard deal. The CMA in question originally had blocked the acquisition over cloud gaming concerns and issues, but Microsoft just recently restructured the deal in a bid to transfer cloud gaming rights for current as well as new Activision Blizzard games to Ubisoft.
“The CMA considers that the restructured deal makes important changes that substantially address the concerns it set out in relation to the original transaction earlier this year,” the CMA in a press release stated, and “opens the door to the deal being cleared.”
This as you should know is just a preliminary decision, which is way ahead of final approval. The CMA has stated that it has now opened a consultation to gain third-party feedback on the proposed remedies of Microsoft, until October 6th. A final decision is however expected just before the extended October 18th deadline.
What the Consultation Period Means For the Deal
The consultation period for those that don’t know is hugely meant to address a couple of remaining concerns that the CMA reportedly has with the deal. “While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues.”
Microsoft Is Understandably Optimistic About the Decision
Microsoft is however understandably optimistic regarding the decision. “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline,” Microsoft Vice Chair and President Brad Smith said on X (formerly Twitter.)
Activision Blizzard Is Also Pleased with the CMA’s Response
Activision Blizzard is also pleased with the response of the CMA. “This is a significant milestone for the merger and a testament to our solutions-oriented work with regulators,” Activision Blizzard CEO Bobby Kotick in a statement sent to employees stated. “I remain optimistic as we continue the journey toward completion and am very grateful to each of you for your dedication and focus throughout this process.”
The UK as you should know is the final regulatory hurdle for the giant deal of Microsoft.
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