Microsoft is reportedly considering selling some of its UK cloud gaming rights in a bid to gain regulatory approval for its $69 billion Activision Blizzard acquisition
Microsoft wants to complete the transaction before the current merger agreement expires on July 18, after which Activision Blizzard could walk away with a $3 billion termination fee if an extension isn’t agreed.
In a research note to investors this week, Wedbush Securities analysts Nick McKay and Michael Pachter predicted Microsoft will make cloud gaming concessions in the UK that enable it to complete the deal before next week’s deadline. “We believe Microsoft can carve out Game Pass UK PLC as a separate operating subsidiary with an independent board charged with keepingcontent off the Game Pass platform pending the conclusion of Microsoft’s appeal of the CMA decision,” they wrote. “This would likely satisfy the CMA, and the deal should close by next Tuesday.”
While the regulator has said it’s ready to consider a restructured deal proposal, it has also warned that this process may require it toEarlier this week Microsoft won a court battle with the Federal Trade Commission which cleared a path for it to complete the acquisition in the US. The FTC, which is also seeking to block the deal over antitrust concerns,
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