A proposed $69bn (£52.6bn) takeover of Activision Blizzard by the tech giant would be the biggest in gaming industry history. Or will it still be? The planned deal faced a number of legal challenges in the United States and divided regulators around the world, but completion is scheduled for July 18th!
However, the UK regulator, the Competition and Markets Authority (CMA), has announced that it is giving itself another six weeks beyond that deadline to consider the deal. Initially, the CMA blocked the acquisition, arguing that it would hurt competition in the emerging cloud gaming market. But after a US judge rejected Federal Trade Commission (FTC) attempts to block the deal, the CMA announced last Wednesday (12) that it was ready to consider any proposals from Microsoft to restructure the transaction.
Now, the official has said he needs until Aug. 29 for full and proper consideration of the detailed and complex submissions he has received from Microsoft, although he says he intends to do his duty as soon as possible and before that date.
On Tuesday night (11), US District Judge Jacqueline Scott Corley rejected a request by the FTC to temporarily halt attempts to close the deal between Microsoft and Activision. The FTC has since asked a different court for a “temporary pause” in the deal.
Any pending regulatory issues make it more likely that Microsoft and Activision would have to negotiate an extension of the planned completion date. Without a deal, either company could walk away from the deal, and if the acquisition doesn’t go ahead, Microsoft will be required to pay Activision a separation fee of up to $3 billion.
Earlier this week, Microsoft Chairman Brad Smith said the company was disappointed that the FTC was continuing to pursue what had become a demonstrably weak case. To address the regulator’s concerns, the tech giant has agreed to license the Call of Duty video game to rivals, including a 10-year deal with Nintendo, if the deal goes through.
European Union regulators approved the deal, saying Microsoft had addressed their competition concerns.
* With information from the BBC
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