By Kelvin Chan | The Associated Press
British competition regulators gave preliminary approval Friday to Microsoft’s restructured $69 billion deal to buy the Santa Monica-based video game maker Activision Blizzard, easing a final global hurdle that paves the way for one of the largest tech transactions in history to go through.
The Competition and Markets Authority said the revamped proposal “substantially addresses previous concerns” about stifling competition in the fast-growing cloud gaming market, which frees players from buying expensive consoles and gaming computers by streaming to tablets, phones and other devices.
Also see: How the Microsoft-Activision deal came back from the dead
The updated offer “opens the door to the deal being cleared,” the watchdog said, though there are lingering concerns. Microsoft has offered remedies that the watchdog provisionally decided will resolve those issues, and regulators are now getting feedback from “interested parties” before making a final decision.
The announcement shows the U.K. watchdog is close to reversing its earlier decision to block Microsoft from taking over the maker of hit gaming franchises like Call of Duty and World of Warcraft.
“The CMA’s position has been consistent throughout — this merger could only go ahead if competition, innovation and choice in cloud gaming was preserved,” CEO Sarah Cardell said. “In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns.”
Also see: FTC plots lawsuit to block Microsoft from closing Activision deal
Since the deal was announced in January 2022, Microsoft has secured approvals from antitrust authorities covering more than 40 countries. Crucially, it got a thumbs-up from the 27-nation European Union after agreeing to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.
But it hit…
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