Microsoft, Activision Blizzard Agree To Pause UK Appeal, Explore Solutions For $69B Deal Concerns

Moments after a U.S. court ruling allowing the merger to proceed, the U.K.'s Competition and Markets Authority (CMA) reached an agreement with Microsoft Corp. (NASDAQ: MSFT) and Activision Blizzard Inc. (NASDAQ: ATVI) to temporarily suspend their ongoing London appeal over the $69 billion merger.

“We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our final report,” a spokesperson from the Competition and Markets Authority said Tuesday, according to Bloomberg.

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In April, the U.K. regulator blocked Microsoft's proposed acquisition, and the tech giant had planned to challenge this decision through an appeal scheduled to begin on July 28. But now, with this agreement, the parties will be able to explore potential modifications to the transaction that could address the CMA's concerns regarding cloud gaming.

Brad Smith, Microsoft's vice chair and president, shared a statement on Twitter confirming the agreement: "After today’s court decision in the US our focus now turns back to the UK. While we ultimately disagree with the CMA’s concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA."

"In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect," Smith added.

Our statement on the mutual request with the CMA for a pause of our appeal in the UK: pic.twitter.com/8Aky2IJjxS

— Brad Smith (@BradSmi) July 11, 2023

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