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Microsoft Offers "Small Divestiture" To Help Activision Deal Close In UK - Report

Microsoft and the UK's regulator are currently negotiating.


In the wake of Microsoft's victory (for now) over the Federal Trade Commission (FTC), it is now looking to renegotiate with the UK's regulator to move the deal forward. The Competition and Markets Authority (CMA) previously blocked the merger over concerns about cloud gaming, but both Microsoft and the CMA have stated they are willing to negotiate. Microsoft's appeal of the CMA's decision is on pause while these discussions take place.

A report from CNBC claims that Microsoft has offered a small divestment to address the CMA's concerns. No details about the divestment have emerged, though it could involve Xbox's cloud services in the UK. According to The Verge, the CMA has also stated that any changes to the deal can result in a new merger investigation. These discussions are in an early stage, and until they resolve, the CMA's decision remains valid. The EU broached similar concerns about cloud gaming, but ultimately approved the deal after Microsoft offered concessions.

The FTC will still go forward with an anti-trust trial starting on August 2, but the judge's decision means that the acquisition can now go forward in the meantime. The FTC can also still appeal the court's decision and has until July 14 to do so.

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