In This Article:
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Microsoft agreed to sell cloud gaming rights to Ubisoft
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UK's CMA: divestment addresses its concerns
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CMA says better if remedy had been put on table earlier
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Deal set to clear one of last hurdles
(Adds shares in paragraph 9, lawyer reaction in paragraph 20)
By Paul Sandle and Yadarisa Shabong
LONDON, Sept 22 - Microsoft's restructured $69 billion acquisition of Activision Blizzard "opens the door" to the biggest ever gaming deal being cleared, Britain's antitrust regulator said on Friday.
Microsoft announced the deal in early 2022, but it was blocked in April by Britain's competition regulator, which was concerned the U.S. tech giant would gain too much control of the nascent cloud gaming market.
In August, "Call of Duty" maker Activision agreed to sell its streaming rights to Ubisoft Entertainment in a new attempt to win over the Competition and Markets Authority (CMA).
The CMA said on Friday that the Ubisoft divestment "substantially addresses previous concerns".
"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," the regulator said.
Microsoft said it was "encouraged by this positive development in the CMA's review process".
"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 President Brad Smith said.
Activision, which also makes "World of Warcraft", "Overwatch" and "Candy Crush", said the preliminary approval was great news for its future with Microsoft.
Shares in Activision rose 1.6% and Microsoft inched up 0.3% in U.S. premarket trading, while Ubisoft gained 3.6% in Paris.
The European Union waved the deal through in May after accepting Microsoft's commitments to license Activision's games to other platforms, the same remedies that Britain had rejected.
The U.S. Federal Trade Commission also opposes the deal, but it has failed in its attempts to stop it.
LATE SOLUTION
The CMA's decision to reopen the case after its block was a radical departure from its play book, but it said on Friday it had been consistent and Microsoft had "substantially restructured the deal" to address its concerns.
"It would have been far better, though, if Microsoft had put forward this restructure during our original investigation," CMA Chief Executive Sarah Cardell said.