Microsoft, Activision Blizzard and the UK’s Competition and Markets Authority have been officially given extra time to resolve their dispute over an expected merger of the gaming companies.
In April, the Capital Markets Authority said it was blocking the $69 billion deal from going through due to concerns about its impact on the emerging cloud gaming market.
Microsoft’s appeal against the CMA’s decision in a court case was due to be heard starting July 28.
But last week, the parties said they had filed a joint application with the Competition Appeals Tribunal (CAT) to stop legal proceedings with a view to reaching an out-of-court agreement over the controversial merger.
During a case management conference on Monday, CAT agreed to temporarily put the case on hold for two months after the CMA said it would consider a modified deal offered by Microsoft, Reuters reports.
“Based on the discussion to date, both sides – Microsoft and the CMA – have confidence that Microsoft’s notification of a restructured transaction is able to address the concerns identified by the CMA,” David Bailey, the attorney representing the CMA, told the court.
The Capital Markets Authority last week extended the deadline for its final decision on the deal from July 18 to August 29 so it can consider a new proposal from Microsoft.
The Xbox maker is said to be considering selling some of its cloud gaming rights in the UK in a bid to gain regulatory approval for the deal.
Microsoft was recently allowed to acquire Activision Blizzard in the US after winning its court battle with the Federal Trade Commission’s anti-rust body.
The company had hoped to complete the deal before the current merger agreement expires on July 18, after which Activision Blizzard could forgo a $3 billion termination fee if no extension is agreed.
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