UK's CMA Backtracks on Activision Deal, Open to New Probe

The Competition and Markets Authority (CMA) in the United Kingdom has opened the door to a new investigation into Microsoft's (MSFT) proposed acquisition of Activision Blizzard (ATVI). The CMA had previously blocked the deal, but it said on Wednesday that it would be willing to reconsider if Microsoft and Activision were to restructure the deal.

The U-turn

The CMA's decision to back down comes after a U.S. court ruled that the deal could go ahead. The U.S. court's decision left the CMA isolated, as it was the only major regulator that had blocked the deal.

The new investigation

If Microsoft and Activision do decide to restructure the deal, they will need to submit a new proposal to the CMA. The CMA said that it would be willing to consider the new proposal, but it would need to be convinced that the deal would not harm competition in the gaming market.

The implications

The CMA's decision to open the door to a new investigation is a significant development in the Activision deal. It is possible that the new investigation could lead to the deal being approved, but it is also possible that the deal could be blocked again.

The future of the deal

It is too early to say what the future holds for the Activision deal. However, the CMA's decision to reconsider the deal suggests that the deal is not dead yet. If Microsoft and Activision are able to restructure the deal in a way that satisfies the CMA, the deal could still go ahead.

You must know:

• The CMA is the UK's competition regulator.
• Microsoft is a multinational technology company.
• Activision Blizzard is a video game publisher.
• The Activision deal is worth $69 billion.
• The U.S. court's decision to allow the deal to go ahead was a major victory for Microsoft.
• The CMA's decision to reconsider the deal is a setback for Microsoft, but it is not necessarily a death knell for the deal.