Microsoft Stock (NASDAQ:MSFT)
Despite a setback from the UK’s antitrust authorities, Microsoft (NASDAQ:MSFT) is looking into several methods to complete its planned purchase of Activision (NASDAQ:ATVI), estimated to cost $69 billion.
According to a report by MLex on Thursday, Microsoft may consider leaving the market in the United Kingdom (UK) or choose to shut the transaction and battle the United Kingdom’s Competition and Markets Authority in court. Currently, the CMA has an interim order that bars Microsoft from purchasing a stake in Activision, and this decision will likely be made permanent in the near future.
This news was published on the same day that a judge in the United Kingdom conducted a hearing on Tuesday and scheduled a trial for July 24 for Microsoft’s appeal of the United Kingdom’s judgment. This date is far earlier than the CMA’s request for a date in late September or October. The huge videogame contract expires on July 18, and the parties can walk away from the agreement, extend it, or renegotiate it before the hearing.
According to a statement sent to MLex by a Microsoft spokeswoman on Thursday, “Our priority is pursuing the appeal process in the UK.” The company “remains committed to constructive dialogue and solutions to address regulatory concerns.”
On Wednesday of this week, Microsoft submitted its appeal to the CMA in a formal manner. Although the merger has been given the go-light by several regulatory bodies, including the European Union, the block placed on it by the CMA is seen as a significant roadblock that may eventually result in the transaction being scrapped.
At the end of the previous month, the antitrust agency in the United Kingdom filed a lawsuit to prohibit the purchase, citing worries about cloud gaming. In December, the United States Federal Trade Commission filed a lawsuit to prevent Activision from entering into the $95 per share agreement. The court case is set to begin in August.
The merger between ATVI and MSFT was given the go-light by South Korea’s antitrust authority on Tuesday.
On Wednesday, a Microsoft presentation is scheduled to take place at the BofA Global Technology Conference.
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