Microsoft likely to succeed in Activision Blizzard acquisition as UK regulator clears deal

Microsoft Corporation is now getting closer to acquiring Activision Blizzard after the competition board in the United Kingdom released its findings after a review of the deal. The result has been described as a “turnaround” since the regulator appears to have changed its view regarding the $75B acquisition of the video game holding company based in Santa Monica, California.

Microsoft’s mega buyout deal to acquire Activision Blizzard is now a step closer to being finalized, and this information was reportedly shared by financial insiders who are keeping an eye on the negotiation. This happened after a surprising move by the UK regulators, where it has finally cleared one huge hurdle in the global approval of Microsoft’s takeover bid of the “Call of Duty” game publisher and creator.

The country’s Competition and Markets Authority recently revealed its findings on Microsoft’s takeover plans of Activision Blizzard. Financial Times reported that the competition board carried out a review of the “new evidence,” and late last week, it seems to have had a change of heart when it announced that it no longer thinks the buyout will have a considerable effect that may lessen competition in the console market.

This means the UK regulator is now suggesting it did not find a reason why the Xbox maker could not buy Activision Blizzard. This was a u-turn because last month, CMA’s provisional findings suggested that Microsoft has to offload the Call of Duty business for the deal to be approved.

In the latest development, CMA’s position has changed, and this has given Microsoft a much higher chance of closing the Activision deal. At any rate, commenting on the regulator’s move, a former CMA lawyer said, “This is extremely unusual. Restating your provisional findings is something you would rather die than do.”

Microsoft said it welcomes “CMA’s rigorous and thorough evaluation of the evidence.” the software and tech firm appreciates the amended provisional findings and stated it is looking forward to working with the competition agency to resolve any other outstanding concerns.

Finally, Activision Blizzard also commented, “The CMA’s updated provisional findings show an improved understanding of the console gaming market and demonstrate a commitment to supporting players and competition. Microsoft has already presented effective and enforceable remedies to address each of the CMA’s remaining concerns.”

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