Microsoft, Activision Blizzard, and UK’s Competition and Markets Authority granted extended time for merger resolution
Microsoft, Activision Blizzard, and the UK’s Competition and Markets Authority (CMA) have formally been granted additional time to resolve their dispute over the anticipated merger of the game companies.
In April, the CMA expressed concerns about the impact of the $69 billion deal on the nascent cloud gaming market, leading to the prevention of the merger.
Microsoft appealed against the CMA’s decision, and the court case was scheduled to begin on July 28.
However, the parties jointly submitted a request to the Competition Appeal Tribunal (CAT) last week to pause legal proceedings and explore an out-of-court agreement.
During a case management conference on Monday, CAT provisionally agreed to a two-month stay of the case after the CMA expressed willingness to consider a modified deal proposed by Microsoft, according to Reuters.
David Bailey, a lawyer representing the CMA, informed the tribunal that both Microsoft and the CMA believe that a restructured transaction could address the concerns raised by the CMA.
Last week, the CMA extended the deadline for its final decision on the deal to August 29 to carefully evaluate Microsoft’s fresh proposal.
Reportedly, Microsoft is considering selling some of its UK cloud gaming rights to secure regulatory approval for the merger.
Microsoft successfully won its court battle against the antitrust regulator, the Federal Trade Commission, clearing the path for the acquisition of Activision Blizzard in the US.
The company aims to complete the transaction before July 18, the expiration of the current merger agreement, to prevent Activision Blizzard from walking away with a $3 billion termination fee in case of no extension.