ATVI - Microsoft explores ways to close Activision deal around UK block - report
2023-06-01 13:03:12 ET
Microsoft ( NASDAQ: MSFT ) is evaluating ways to close its planned $69 billion acquisition of Activision ( NASDAQ: ATVI ) despite a block from the UK's antitrust authority.
Microsoft ( MSFT ) could look to pull out of the UK market or it could close the purchase and fight the UK's Competition and Markets Authority in court, according to an MLex report on Friday. The CMA currently has an interim order that prevents Microsoft from acquiring an interest in Activision ( ATVI ), which is likely to be made permanent soon.
The report comes as a UK judge held a hearing on Tuesday and set a trial for Microsoft's appeal of the UK decision for July 24 , well before the CMA's request for a date in late-September or October. The hearing falls after the July 18 termination date for the mega videogame deal, where the parties can walk, extend, or renegotiate the deal.
"Our priority is pursuing the appeal process in the UK, and we remain committed to constructive dialogue and solutions to address regulatory concerns," a Microsoft spokesperson told MLex on Friday.
Last Wednesday, Microsoft ( MSFT ) formally filed its appeal to the CMA. Although several regulators, including the European Union, have approved the deal, th e CMA 's block is viewed as a major obstacle that could ultimately lead to the transaction's termination.
The UK antitrust regulator sued late last month to block the deal , citing concerns about cloud gaming. The U.S. Federal Trade Commission als o sued to block the $95 per share deal for Activision in December , with a trial scheduled to start in August.
On Tuesday, South Korea's antitrust regulato r approved the ATVI/MSFT deal .
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Microsoft explores ways to close Activision deal around UK block - report