Microsoft’s (NASDAQ:MSFT) acquisition of video game maker Activision Blizzard (NASDAQ:ATVI) is likely to close despite an objection from the U.K.’s competition watchdog, according to analysts at Macquarie. Recent approvals from regulators in China and the European Union have created “a path” for the $69 billion deal to be finalized. The Department of Justice still has concerns, but the analysts believe that the deal will not run into any serious roadblocks from the U.S.
The CMA published an interim order restricting Microsoft and Activision from acquiring an interest in each other, citing concerns that the merger would limit choices for gamers as well as innovation. The Macquarie analysts argued that the CMA’s decision now looks “out of consensus in nature,” which would in effect reduce its impact on the ultimate outcome of the merger. They said the tie-up could still potentially be closed without a green light from the CMA if Microsoft agrees to offer Activision content in the U.K. on Xbox and PlayStation consoles only.
Overall, the analysts believe that the deal will be finalized and that Microsoft and Activision will be able to move forward with their plans.