Microsoft's UK Appeal for Activision Acquisition Put on Hold for Two Months

The appeal against the UK's rejection of Microsoft's proposed takeover of Activision Blizzard has been temporarily halted for two months. Initially, Microsoft and Activision Blizzard were set to appear in court before the Competition and Markets Authority, following the regulator's refusal to approve the $68.7 billion deal earlier in the year. However, both parties requested a pause in proceedings, allowing Microsoft time to formulate new proposals that could alleviate the regulator's concerns. According to Reuters, the Competition Appeal Tribunal has consented to adjourn the hearing for Microsoft's appeal. A lawyer for the CMA, David Bailey, stated that both sides are confident that a restructured transaction could address the regulator's concerns. A Microsoft spokesperson expressed gratitude for the conditional pause, citing the company's consideration of modifications to the deal to address the CMA's concerns. The CMA aims to make a decision on the new proposals by August 29. Although the specifics of Microsoft's proposed changes are unknown, they are likely to focus on the company's cloud gaming business, which was a key concern for the CMA. The request to pause the appeal came after the US Federal Trade Commission was denied a preliminary injunction to prevent Microsoft from completing the transaction. The Microsoft-Activision deal is set to close, and if it does not, Microsoft will be required to pay $3 billion to Activision Blizzard and renegotiate the acquisition. The two companies are reportedly discussing an extension to the deadline.