Activision Blizzard King has $12.5 billion cash on hand

Activision Blizzard King has $12.5 billion cash on hand.

The UK’s Competition and Markets Authority (CMA) is throwing caution over the idea of a quick resolution to its concerns around Microsoft’s proposed Activision Blizzard acquisition. Microsoft and UK regulators were extremely quick to issue statements over their intention to pause their Activision battle to negotiate after Microsoft won a key FTC legal fight yesterday. But now, the UK regulator says Microsoft’s proposals may “lead to a new merger investigation.”

“Whilst merging parties don’t have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation,” a spokesperson said.

“Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis. These discussions remain at an early stage and the nature and timing of next steps will be determined in due course.

The CMA originally blocked the deal on cloud concerns earlier this year, but both Microsoft and the CMA are now willing to negotiate after Judge Jacqueline Scott Corley’s ruling on Tuesday. The CMA is making it clear that Microsoft won’t be able to rely on additional behavioral remedies, though. The regulator had originally favored a structural remedy for the console side of its concerns before eventually blocking the deal over cloud gaming competition concerns instead.

In a statement to The Verge, supplied by CMA media officer Billy Proudlock, the regulator warns that the discussions with Microsoft are at an early stage:

Whilst merging parties don’t have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation. Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis. These discussions remain at an early stage and the nature and timing of next steps will be determined in due course.

The platform holder was due to face the CMA again in court as it argued against the latter’s decision to the Competition Appeal Tribunal on July 24. However, both parties have now agreed to pause this process while Microsoft modifies its deal.

In a statement to GamesIndustry.biz, Microsoft’s vice chair and president Brad Smith said: “After today’s court decision in the US, our focus now turns back to the UK. While we ultimately disagree with the CMA’s concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA.