Microsoft and the UK’s Competition and Markets Authority (CMA) decided to pause its fight after the CMA blocked the merger following the court denying the FTC’s primary injunction. Now, the CMA has extended its deadline for its verdict on the merger between Microsoft and Activision Blizzard. The ruling was originally set for July 18 but will now come and the end of next month on August 29.
“The CMA considers that there is insufficient time remaining in the statutory period for full and proper consideration of Microsoft’s submission on the proposed Order,” the watchdog said. “As such, the Inquiry Group considers that there are special reasons to extend by six weeks… The revised period will therefore end on 29 August 2023. However, the Inquiry Group aims to discharge its duty as soon as possible and in advance of this date.”
The CMA blocked the merger back in April. At the time, the CMA said that the deal would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.”
Talking about pausing the legal proceedings alongside Microsoft, the CMA said it’s “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.”
Microsoft is also reportedly considering selling some of its UK cloud gaming rights as a way to approve the deal. Bloomberg reports that the company could sell the cloud-based market rights for games in the UK to a telecommunications, gaming or internet-based computing company, or possibly a private equity firm.
Microsoft has also been exploring ways to complete the merger despite a UK veto on the deal. They want to complete the deal 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.