As expected, the UK Competition and Markets Authority (CMA) published its provisional verdict on the Activision Blizzard acquisition earlier than expected. There is good news for Microsoft and Xbox, as the regulator changed its mind and now preliminarily approved the deal.
This comes after Microsoft restructured the deal to sell the cloud gaming rights to Activision Blizzard titles to Ubisoft. The CMA seems satisfied with all the adjustments, so it is expected to fully approve the deal in a matter of days.
Microsoft is one step away from completing the purchase of Activision Blizzard
The CMA originally blocked the deal between Microsoft and Activision Blizzard. However, the regulator is now satisfied with the terms of the deal following the restructuring involving Ubisoft. The agency believes it is an alternative that addresses its concerns about the cloud gaming market.
For this reason, the regulator decided to preliminarily approve the purchase. What does this mean? That Microsoft is one step away from completing the acquisition of Activision Blizzard and its franchises. The CMA only has to give its final verdict, which will come before October 18.
In these days, the regulator will make one more consultation to obtain additional information about the purchase. In particular, it will allow third parties to give their opinion on the concessions to be made by Microsoft. The CMA is expected to maintain its current stance and approve the deal by the middle of next month.
Microsoft and Activision welcome the CMA's decision
The news was warmly welcomed by Microsoft and Activision Blizzard. Brad Smith and Bobby Kotick, heads of the companies, celebrated the CMA's change in stance and pledged to provide solutions to any further concerns of the regulatory body.
“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,” said Microsoft president.
This is a significant milestone for the merger and a testament to our solutions-oriented work with regulators. 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," said Kotick.
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