According to a recent report by Bloomberg News, Microsoft Corp and Activision Blizzard are considering relinquishing some control of their UK cloud gaming business in order to satisfy regulators and proceed with their $69 billion merger. The deal, which is the largest in the history of the video game industry, faced opposition from Britain’s Competition and Markets Authority (CMA). However, the CMA stated on Wednesday that a restructured agreement between Microsoft and Activision Blizzard could address its concerns, subject to further investigation.
To appease regulators, the sale may involve transferring cloud-based market rights for UK gaming to an Internet-based computing, gaming, or telecommunications company. Additionally, there is potential interest from private equity firms. While the US Federal Trade Commission (FTC) had requested a temporary stay on the merger, a US court rejected this request on Thursday.
Neither Microsoft nor Activision Blizzard have provided an immediate response regarding these developments. The original deadline for the deal was set for July 18th, with Microsoft facing a $3 billion break-up fee if it failed to proceed. However, now that the larger deal appears back on track, both companies are focused on modifying the terms to gain regulatory approval.
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