Microsoft Corporation (NASDAQ:MSFT) has made significant strides in its endeavor to acquire the video game company Activision Blizzard (NASDAQ:ATVI), having successfully addressed the antitrust concerns raised by British authorities. The approval, indicated on Friday, comes after Microsoft made substantial adjustments to the proposed $69 billion deal, thereby paving the way for one of the largest tech mergers in history.
The Competition and Markets Authority (CMA) in Britain was the final major agency to give its nod of approval for the acquisition. Initially, the CMA attempted to block the deal due to apprehensions about potential harm to competition within the gaming industry. However, Microsoft's decision not to acquire a segment of Activicon's business related to cloud gaming led to a change in stance by the regulator.
This proposed acquisition, first announced in January 2022, has been under scrutiny by antitrust officials around the globe. The merger has been seen as a litmus test for whether such large-scale tech deals would be allowed amidst concerns over growing dominance within the industry.
On Friday, the CMA released a statement saying that the revised deal includes significant changes that effectively address their initial concerns about the original transaction earlier this year. These modifications have significantly alleviated their fears, thus allowing Microsoft to overcome a major hurdle in its pursuit of Activision Blizzard.
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