Microsoft reportedly selling Cloud gaming rights as CMA extends Activision acquisition final date to reach a settlement

Things are moving quickly in the court appeals of Microsoft's Activision Blizzard acquisition. A couple of days ago, the British Competition and Markets Authority (CMA) declared that the deal will be re-investigated if Microsoft chose to restructure it to appease the authorities. Following these conditions, both parties seem to have moved forward with the deal.

The CMA has given Microsoft an extension up to August 29 to help restructure the deal. Initially, the deal was supposed to close by July 18, when Activision (NASDAQ: ATVI) was supposed to get delisted from the stock market. The official reason quoted by the British markets authority is Special Reasons. However, as mentioned in the public order, the CMA will try its best to resolve the Activision case before this date.

The CMA's public order allows for a six-week extension on the ABK deal (Image via the CMA)

In other news, Microsoft is now considering selling off some of its Cloud streaming rights in the UK to reduce its authority in the market. It is worth noting that unlike in the USA, where concerns were raised on ownership of IPs like Call of Duty and Diablo and the deal's effect on competitor platforms like the PlayStation, Cloud streaming is what the UK is concerned about.

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How is Microsoft's Activision, Blizzard, and King acquisition shaping up so far?

After getting a green signal from a US district court against a plea submitted by the Federal Trade Commission (FTC), the Phil Spencer-led Gaming division of the company turned its focus to the UK, where the CMA has blocked the deal citing the company's grip over the Cloud gaming market.

CMA has cited that the Activision Blizzard King (ABK) acquisition would give the Redmond-based tech juggernaut a market monopoly in cloud streaming, which could harm the market in multiple ways.

Earlier this week, Microsoft and the CMA chalked out a deal to promote negotiations and early closure of the court appeal. Microsoft cited that these negotiations were in the public's favor.

Overall, the deal is currently in a tumultuous stage. It is unclear how much Microsoft will have to let go to complete the ABK acquisition without further roadblocks from governments.