Microsoft has submitted changes to its proposed takeover of the video game maker Activision Blizzard, in a bid to win over the UK regulator which previously blocked the $69 billion (€63 billion) deal.
Britain’s Competition and Markets Authority (CMA) said on Tuesday it had opened a Phase 1 probe into a newly restructured deal by Microsoft to buy Activision, with a first deadline set for October 18th.
The regulator said under the new proposal Microsoft would acquire Activision, but Activision’s cloud streaming rights outside of the European Economic Area would be divested to Ubisoft Entertainment.
“Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18th,” Microsoft said in a statement.
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The CMA in April became the first major regulator to block the acquisition of the “Call of Duty” maker, citing concerns about the impact on competition in cloud gaming.
The US Federal Trade Commission (FTC) has also opposed the tie-up, but suffered a major defeat when a federal court rejected the FTC’s application to temporarily halt the deal.
In Britain, the CMA’s final report is usually the last word. Companies cannot offer remedies after its publication and their only recourse is to the CAT.
