Microsoft and a UK regulator have been given more time to resolve Activision merger issues
Microsoft and the UK's antitrust regulator have been given a two-month break in their legal battle as the company seeks to resolve concerns from the Competition and Markets Authority (CMA) over its project acquisition of Activision Blizzard for $68.7 billion. Competition Appeals Tribunal (CAT) Judge Marcus Smith, who hears appeals of CMA decisions, wants watchdog proof that this is the right course of action, but has put the legal battle on hold at the moment.
Smith wants the AMC to justify its request for an adjournment by providing evidence showing a material change in circumstances or "special reasons" for delaying litigation. He also wants the regulator to detail any new consultation process it plans to undertake "so everyone knows how it will work", according to Reuters. The judge asked the CMA to present evidence on Thursday.
Microsoft appealed the CMA's decision in April to block the merger due to cloud gaming issues. The CAT was to hear this case from July 28. However, shortly after the Federal Trade Commission lost an attempt to block the U.S. acquisition last week, the CMA said it would consider a modified Microsoft merger deal. The CMA, Microsoft and Activision all requested more time from the CAT and the court granted the request.
CMA attorney David Bailey told CAT that the FTC's legal loss "was not part of the CMA's thinking" in terms of whether it would consider a new Microsoft proposal. "Based on discussions to date, both parties - Microsoft and the CMA - are satisfied that Microsoft notifying a restructured transaction is capable of addressing the concerns identified by the CMA," he said.
It emerged during Monday's hearing that Microsoft has yet to submit an amended proposal to the CMA, even though the deadline for the merger is tomorrow, July 18. It seems unlikely that everything will be resolved by then. Otherwise, Microsoft and Activision will either have to agree to an extension of their current deal (the more likely outcome given their desire to complete the deal) or renegotiate the terms. Otherwise, Activision may walk away from the deal with a big $3 billion breakup check from Microsoft in its pocket.
Reports suggest Microsoft may be selling some cloud gaming rights in the UK to address CMA concerns. Microsoft signed agreements with third-party cloud gaming companies to offer its games on their platforms, which was enough for the European Union to approve the merger.
In the meantime, the FTC is still scheduled to hold its own hearing on the acquisition starting August 2. The agency sued to block the merger and sought a preliminary injunction to stop Microsoft and Activision Blizzard from closing the deal until it could take the case to court, but that didn't work. unsuccessful.
As such, Microsoft and Activision will surely be keen to seal things off by early August. It was suggested that they would try to close the merger before the original deadline despite the dispute with the CMA and find...
Microsoft and the UK's antitrust regulator have been given a two-month break in their legal battle as the company seeks to resolve concerns from the Competition and Markets Authority (CMA) over its project acquisition of Activision Blizzard for $68.7 billion. Competition Appeals Tribunal (CAT) Judge Marcus Smith, who hears appeals of CMA decisions, wants watchdog proof that this is the right course of action, but has put the legal battle on hold at the moment.
Smith wants the AMC to justify its request for an adjournment by providing evidence showing a material change in circumstances or "special reasons" for delaying litigation. He also wants the regulator to detail any new consultation process it plans to undertake "so everyone knows how it will work", according to Reuters. The judge asked the CMA to present evidence on Thursday.
Microsoft appealed the CMA's decision in April to block the merger due to cloud gaming issues. The CAT was to hear this case from July 28. However, shortly after the Federal Trade Commission lost an attempt to block the U.S. acquisition last week, the CMA said it would consider a modified Microsoft merger deal. The CMA, Microsoft and Activision all requested more time from the CAT and the court granted the request.
CMA attorney David Bailey told CAT that the FTC's legal loss "was not part of the CMA's thinking" in terms of whether it would consider a new Microsoft proposal. "Based on discussions to date, both parties - Microsoft and the CMA - are satisfied that Microsoft notifying a restructured transaction is capable of addressing the concerns identified by the CMA," he said.
It emerged during Monday's hearing that Microsoft has yet to submit an amended proposal to the CMA, even though the deadline for the merger is tomorrow, July 18. It seems unlikely that everything will be resolved by then. Otherwise, Microsoft and Activision will either have to agree to an extension of their current deal (the more likely outcome given their desire to complete the deal) or renegotiate the terms. Otherwise, Activision may walk away from the deal with a big $3 billion breakup check from Microsoft in its pocket.
Reports suggest Microsoft may be selling some cloud gaming rights in the UK to address CMA concerns. Microsoft signed agreements with third-party cloud gaming companies to offer its games on their platforms, which was enough for the European Union to approve the merger.
In the meantime, the FTC is still scheduled to hold its own hearing on the acquisition starting August 2. The agency sued to block the merger and sought a preliminary injunction to stop Microsoft and Activision Blizzard from closing the deal until it could take the case to court, but that didn't work. unsuccessful.
As such, Microsoft and Activision will surely be keen to seal things off by early August. It was suggested that they would try to close the merger before the original deadline despite the dispute with the CMA and find...
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