Call Of Duty Parent Acquisition By Microsoft Could Finally See Completion Soon Amid Regulatory Hurdles

Microsoft Corp MSFT is on the brink of completing its $68.7 billion acquisition of Activision Blizzard, Inc ATVI, with an announcement potentially coming by October 13. 

This culmination is contingent upon the approval of the U.K.'s Competition and Markets Authority (CMA), which had previously obstructed the deal, Variety reports. 

Microsoft managed to secure preliminary approval from the CMA in September after restructuring the agreement to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft.

Microsoft had cut similar deals with Nvidia Corp (NASDAQ: NVDA) and Sony Group Corporation SONY to win support for the acquisition.

The CMA's final decision is likely next week, following the expiration of a deadline for public opinions on the merger, said the report. 

If approved, this will conclude a 20-month journey of obtaining regulatory approvals and overcoming legal hurdles in Europe and the U.S. Microsoft and Activision extended their deal deadline to October 18. Still, support from the CMA could expedite the process.

The acquisition faced challenges when the CMA blocked it due to cloud concerns. However, the EU gave its nod after Microsoft made significant cloud concessions. 

In the U.S., the Federal Trade Commission (FTC) initially attempted to block the acquisition but failed to secure a preliminary injunction. The FTC is currently appealing this outcome, with a decision expected in December. 

If the appeal is unsuccessful, the FTC plans to resume its administrative case against the acquisition, potentially attempting to reverse the deal post-closure. However, this would be a significant challenge.

Price Actions: ATVI shares traded higher by 0.51% at $94.15 premarket on the last check Friday. MSFT shares traded higher by 0.23% at $320.09.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.