Microsoft's restructured acquisition of Santa Monica video game giant Activision Blizzard "opens the door" to the deal being cleared, U.K. regulators said Friday, removing a significant hurdle for closing the gaming industry's largest merger.
The U.K.'s Competition and Markets Authority initially blocked the deal in April after the regulator raised concerns that the deal would harm competition in cloud-based gaming in the country.
Microsoft's revised $69 billion acquisition of video game developer Activision Blizzard has received preliminary permission from the British Competition and Markets Authority (CMA), a major development in one of the biggest tech deals in history.
The CMA decision comes after months of consideration and initial worries about the deal's possible effects on competition in the quickly growing cloud gaming business, where gamers may access games via streaming to various devices, obviating the need for pricey gaming consoles and computers.
“This is a significant milestone for the merger and a testament to our solutions-oriented work with regulators,” Activision CEO Bobby Kotick said in a blog post directed to employees Friday. “I remain optimistic as we continue the journey toward completion.”
“We are encouraged by this positive development in the CMA’s review process,” Brad Smith, Microsoft’s president, said in an emailed statement. “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 Oct. 18 deadline.”
No comments