UK Merger Could Require Microsoft and Activision to Divest Certain Cloud-Based Game Rights
According to a report from Bloomberg News on Thursday, Microsoft Corp and Activision Blizzard are contemplating relinquishing a portion of their authority over their cloud-gaming enterprise in the UK. This move is aimed at satisfying regulators and facilitating the successful completion of their $69 billion merger.
The deal, the largest in the history of the video games industry, was also struggling in Britain until this week. Britain’s Competition and Markets Authority, which opposed the deal, said on Wednesday that a restructuring between Microsoft and Activision Blizzard could satisfy its concerns, based on a new investigation.
The deal could include cloud-based market rights for games in the UK for a telecommunications, gaming or internet-based computing company, the Bloomberg report said, citing people familiar with the matter. According to the report, a private equity firm may also be interested.
The US Federal Trade Commission (FTC) had requested a temporary suspension of the trade, but a US court rejected the request on Thursday.
Microsoft and Activision did not immediately respond to Reuters’ request for comment.
The two US companies had agreed to a July 18 deadline for the deal, with Microsoft obligated to pay a $3 billion breakup fee if it falls through. Still, with the larger $69 billion deal back on track, both sides are now focused on amending the deal to get regulatory approval.
