Xbox’s Activision Blizzard Merger Looking Unlikely to Close Tomorrow Following CAT Hearing

A judge for the UK’s Competition Appeal Tribunal (CAT) has paused Microsoft’s appeal against the Competition Markets Authority (CMA), allowing both parties more time to negotiate. 

During a hearing held today, the judge granted a two-month pause on the appeal process as Microsoft and the CMA resume negotiations. In April, the CMA blocked Microsoft’s proposed acquisition of Activision Blizzard, citing cloud gaming monopolization as a reason not to allow the deal to go through. Microsoft then appealed the decision, and the trial was set to begin on July 28. 

The CMA announced it was open to renegotiating a deal with Microsoft after the tech giant won a major merger case against the FTC, with both parties asking the CAT pause the appeal as both parties head to the negotiation table. 

The hearing today not only grants both parties more time to negotiate but is also a sign that Microsoft may not close the Activision Blizzard merger before its deadline by July 18. If the deal doesn’t close tomorrow, then Microsoft may seek a temporary extension as it continues negotiating. The CMA, meanwhile, has warned Microsoft that a renegotiated deal could lead to an entirely new investigation. 

Xbox won a major victory against the Federal Trade Commission (FTC) last week in its quest to finally its deal with Activision Blizzard, but it still faces regulatory hurdles, including an FTC trial in August. Apart from concerns over Microsoft’s potential monopolization of cloud technology, regulators have raised concerns over whether Call of Duty will continue to be exclusive.

You can read our full recap of the Xbox FTC trial and the verdict right here.

Taylor is a Reporter at IGN. You can follow her on Twitter @TayNixster.