Microsoft moves closer to completing Activision deal

The Competition Markets Authority has suggested that Microsoft is now close to sealing regulatory approval for the deal.

Microsoft has moved a stepped closer to securing regulatory approval for its proposed takeover of Activision Blizzard.

The tech giant’s efforts to buy the firm have so far been blocked by regulators in the UK – but the Competition Markets Authority has now confirmed that Microsoft’s revised offer for the company “opens the door” to the takeover being cleared.

Sarah Cardell, the chief executive of the Competition Markets Authority, said in a statement: “The Competition Markets Authority’s position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved. In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns.

“It would have been far better, though, if Microsoft had put forward this restructure during our original investigation. This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

Microsoft’s new offer will mean that it will not buy the cloud gaming rights owned by Activision Blizzard. However, the latest move – which was launched last month – is thought to address most of the concerns of the Competition Markets Authority.

Despite this, the much-discussed takeover still needs to be rubber-stamped by all of the relevant regulators before the deal can be closed.