The CMA says they have "limited residual concerns" over the new deal.
A photo of buildings along the Danube in the United Kingdom.

In April 2023, the UK's Competition and Markets Authority (CMA) blocked Microsoft's acquisition of Activision Blizzard. Their major hang-up were over concerns about cloud gaming of all things. Since then, the acquisition deal was approved by the European Commission and even the Federal Trade Commission (much to their chagrin).

With the only roadblock remaining being the CMA's approval, it looks like that is finally starting to progress. A statement was issued by the UK government about where things currently stand on this deal.

Earlier this year, the CMA blocked Microsoft from acquiring the whole of Activision due to concerns that the deal would harm competition in cloud gaming in the UK. After that deal was blocked, Microsoft submitted a restructured transaction in August for the CMA to review.

Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed.​(...)

In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision’s content, so would not be in a position to limit access to Activision’s key content to its own cloud gaming service or to withhold those games from rivals. Unlike the remedies the CMA previously rejected, Ubisoft will be free to offer Activision’s games both directly to consumers and to all cloud gaming service providers however it chooses.
That's right, Ubisoft has entered into the picture here. They will be the independent third party that is allowed to offer Activision's titles via the cloud. Furthermore, this revised deal involving Ubisoft also requires that Microsoft "port Activision titles to operating systems other than Windows and support game emulators when requested."

The CMA seems to be largely on board with these revised changes. However, there are some "limited residual concerns" by the CMA. In particular, they are worried that "certain provisions in the sale of Activision’s cloud streaming rights to Ubisoft could be circumvented, terminated, or not enforced."

Microsoft has offered undisclosed remedies "to ensure that the terms of the sale of Activision's rights to Ubisoft are enforceable by the CMA" as a response to those concerns. In response, the CMA "has provisionally concluded that this additional protection should resolve those residual concerns."

While it isn't set in stone just yet, things are looking quite promising for Microsoft here. The CMA has "opened a consultation" over Microsoft's proposed remedies that are set to conclude on October 6, 2023. It's entirely possible that we are about two weeks away from having this thing finally wrap up.