ATVI - U.K. regulator seeks public input on Microsoft-Activision deal after new arguments

2023-08-01 05:24:53 ET

The U.K.'s antitrust regulator is seeking public comments on whether it should clear Microsoft's ( NASDAQ: MSFT ) $69B acquisition of Activision Blizzard ( NASDAQ: ATVI ) ahead of its final order expected by August 29, raising the likelihood of the biggest ever gaming deal crossing the last regulatory hurdle.

This follows Microsoft's ( MSFT ) submission of "material change of circumstance", because of which it believes the Competition and Markets Authority should revisit its previous order blocking the deal.

Microsoft ( MSFT ) cited binding commitments made to the European Commission regarding cloud gaming licensing deals and its pact to keep Call of Duty on Sony's ( SONY ) PlayStation as reasons to revisit CMA's initial order.

Microsoft ( MSFT ) said its deals with cloud gaming providers including Nvidia ( NVDA ) provide immediate access to Activision ( ATVI ) games for at least ten years, thereby improving competition.

Any breach of its commitments to the EC would put Microsoft ( MSFT ) at risk of fines of up to 10% of its worldwide turnover, or ~$19.8B based on its 2022 turnover.

The CMA said while submissions regarding material change of circumstance are "very rare", it will consider Microsoft's ( MSFT ) submission. Public comments should reach the CMA by August 4.

The deadline for completing the merger was earlier extended to October 18 .

More on Microsoft-Activision deal

• FTC official withdraws internal suit over Microsoft, Activision merger
• Adding Activision 'rounds out' Microsoft's gaming strategy: Evercore
• Why I Believe Microsoft Might Close Activision Deal Despite U.K. Objections
• Buffett: Not Playing Games With Microsoft-Activision Merger

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