Microsoft Corp and Activision Blizzard may cede control of their cloud-gaming business in the UK to address regulatory concerns and proceed with their monumental $69 billion merger, according to Bloomberg News. This deal, which is the largest in the history of the video game industry, encountered obstacles in Britain until recently. The Competition and Markets Authority, which initially opposed the transaction, stated on Wednesday that a restructured agreement between Microsoft and Activision Blizzard could alleviate its concerns, on the condition of a new investigation.
To satisfy regulators, the potential sale might involve transferring the cloud-based market rights for games in the UK to a telecommunications, gaming, or internet-based computing company, as reported by Bloomberg. The article suggests that a private-equity firm may also express interest in acquiring these rights.
While the U.S. Federal Trade Commission (FTC) had called for a temporary halt to the deal, a U.S. court dismissed the request on Thursday. Both Microsoft and Activision have yet to comment on this matter, following Reuters’ request for a statement.
Originally set to be finalized by July 18, the agreement between the two American companies included a $3 billion breakup fee for Microsoft if the deal were to fall through. However, with the larger $69 billion deal now back on track, both entities are prioritizing modifications to gain regulatory approval.
(Reporting by Lavanya Ahire in Bengaluru; Editing by Sherry Jacob-Phillips)
Credit: The Star : Tech Feed
