Breaking: UK Greenlights Microsoft-Activision Restructured Agreement!

Microsoft's reorganization of its intended purchase of Activision Blizzard creates an opportunity for the deal to gain approval, according to Britain's antitrust authority on Friday.

In 2022, Microsoft (MSFT) announced its ambitious acquisition of Activision Blizzard, marking the largest gaming deal ever. However, in April, the UK competition regulator halted the $69 billion transaction due to concerns about the American tech behemoth's excessive dominance in the emerging cloud gaming sector.

If the Microsoft deal proceeds, Activision Blizzard (ATVI), the developer of "Call of Duty," has agreed to sell its streaming rights to Ubisoft Entertainment. The Competition and Markets Authority stated that the Ubisoft divestment adequately resolves prior concerns.

The regulator stated that although the CMA has identified some concerns remaining with the new deal, Microsoft has proposed solutions that the CMA has preliminarily determined should resolve these matters.

The Houston Outlaws team competes in an Overwatch match during the 'Battle For Texas' tournament at Tech Port Arena in San Antonio, Texas. This tournament marks the first in-person match since early 2020.

Microsoft and Activision extend their deal deadline

Microsoft said it was "encouraged by this positive development in the CMAs review process."

Microsoft president Brad Smith stated that they have provided solutions that comprehensively resolve the remaining concerns of the CMAs regarding cloud game streaming. He further added that they will persistently strive to obtain approval for the closure before the October 18 deadline. The CMA expressed their apprehension regarding the possibility of certain clauses in the Ubisoft deal being evaded, terminated, or not upheld.

Microsoft has offered remedies to ensure that the terms of the sale are enforceable by the regulator.

The CMA is now consulting on the remedies before making a final decision.