Microsoft and Activision Blizzard are exploring a restructured version of their proposed $75bn tie-up in a move that could trigger a fresh UK antitrust probe, according to the regulator that last month blocked the original deal. The Competition and Markets Authority said on Wednesday that the only way to return to the negotiating table would be to start from scratch with a new deal.

People close to the deal have suggested a divestiture could be a possible solution, but it is unclear what assets Microsoft would be willing to lose. Nonetheless, the proposed deadline for the deal closing on July 18 is unlikely to be met. Microsoft could pay a break fee of as much as $3bn if it falls apart.

The CMA and the companies involved have requested a stay in legal proceedings after the parties were due to appear in the UK's appeal court at the end of the month to challenge the decision. However, the court has to approve the request, and the FTC may still appeal against Tuesday's ruling by the US judge.

One person familiar with the negotiations suggested that the CMA and the companies would now enter a three-month period of talks. The person said there was a period of time "to discuss what the CMA really wants", adding that it was "way too early to speculate what's on the table".

The discussions over a new deal were instigated by Microsoft, according to one person familiar with the talks. A former CMA lawyer said it was unusual for companies to bring a reconstituted deal in front of the regulator to begin the process again.

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The CMA's decision to agree to reconsider the deal at this stage, when an appeal was imminent, has surprised advisers on the deal and many competition lawyers.

"It is really an unprecedented and dramatic turn of events," said Alex Haffner, competition partner at UK law firm Fladgate.

One source close to the deal, who asked not to be named, said they were surprised by the CMA's decision, saying it looked like the UK regulator did not want to stand alone from the two big jurisdictions of the European Union and the United States.

Becket McGrath, a partner at Euclid Law, said it seemed like the CMA wanted a way out of an "uncomfortable position".

UK's CMA open to new Microsoft-Activision probe after u-turn | Reuters

Nobody fucking knows what's going on.

I think regardless of the details or the timeline at this point Microsoft seems happy with the result, which means they are confident about the deal again

If I don't see an angry Microsoft tweet bitching about the CMA then yeah they're probably fine with this.

But now we once again don't know how close it is to closing, Lol.

I am more interested in what MS offered to get this ball rolling again. I believe every see this deal going through now, just wondering what MS feel is not worth it to keep. We all assume its XCloud but I wonder if it could be something else. We know it has to be cloud related.

I'll forever find it amusing that the CMA is trying to enforce their will globally lol. They don't want to accept remedies just for the UK. You know, their jurisdiction, but wanting their remedies to be globally....

Watch Microsoft-Activision Deal Has Wiggle Room for Divestiture, Says Former CMA Legal Director - Bloomberg

He made a joke that the CMA asked for more time in the CAT appeal but didn't get it and by doing this move, they now have more time.

What if it isn't a joke 👀

Crafty CMA. Jk ...Maybe.

Surely Microsoft wouldn't fall for that.

Idas Said: