Microsoft Submits "Change of Circumstances" to CMA Over Activision Blizzard Buyout

Microsoft has recently submitted a new request to the UK's regulatory authority, the CMA, seeking to reopen discussions on their merger with Activision Blizzard. The company cites significant changes in circumstances and special reasons to support their argument. The CMA had previously blocked the $69 billion merger in April, but Microsoft has since gained approval from EU regulators and successfully defeated the FTC in federal court. Notably, Microsoft has also reached an agreement with Sony, a major opponent of the merger, ensuring that Call of Duty will be available on PlayStation consoles for at least a decade.

In their submission, Microsoft highlights three key points to persuade the CMA. Firstly, they emphasize their agreement with the European Commission to enforce various cloud agreements they have signed. Secondly, they point to the significant agreement reached with Sony. Thirdly, they present fresh evidence from the FTC case that challenges the CMA's previous conclusions.

Concurrently, Microsoft is actively working on a final proposal to modify the merger agreements to directly address the CMA's concerns. This proposal reportedly involves selling off its cloud gaming rights in the United Kingdom.

The CMA's deadline to publish the new final report is August 29, less than a month away. Microsoft's modified final proposal is expected to be revealed in the following weeks. The merger deadline between Xbox and Activision Blizzard has been extended to October 18, but there is a possibility that the deal may be finalized earlier if the CMA's approval is obtained. As of now, the CMA remains the only obstacle preventing the Microsoft-Activision Blizzard merger from being completed.