Activision shares leap after UK narrows probe of $69B Microsoft deal

British antitrust regulators scrutinizing Microsoft’s blockbuster purchase of videogame maker Activision Blizzard on Friday dropped issues that the deal would damage the console gaming market, narrowing the scope of their investigation.

Activision shares rose almost 6% to $84.39.

The Competitors and Markets Authority stated it now not thinks the $69 billion deal will lead to a “substantial lessening of competitors” for console video games within the UK, an update to provisional findings issued last month primarily based on new proof.

The all-cash deal is about to be the most important within the historical past of the tech business.

However it faces stiff opposition from rival Sony and is being examined by regulators in the US and Europe over fears that it might give Microsoft management of popular game franchises like Call of Duty.

The acquisition hit a hurdle final month when the UK watchdog stated in its preliminary choice that the deal would stifle competitors for each cloud and console gaming.

Based mostly on the brand new proof, together with knowledge that provides higher perception into videogamers’ buying conduct, the watchdog stated it “wouldn’t be commercially useful” for Microsoft to make Name of Responsibility unique to its Xbox console.

That’s the alternative of its authentic evaluation, which indicated that it might be worthwhile to dam the sport from competing consoles like Sony’s PlayStation.

“The cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action,” Martin Coleman, chair of the CMA’s independent expert panel investigating the deal, said in a press release.

The watchdog is still investigating the deal’s impact on the cloud computing market and plans to issue a final report by April 26.

Microsoft said it welcomed the findings and would work with the watchdog “to resolve any excellent issues.”