Activision Blizzard rises as UK regulator narrows inquiry scope on Microsoft merger
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Activision Blizzard (NASDAQ:ATVI) shares jumped more than 5% in mid-day trading on Friday after the U.K.'s antitrust regulator "provisionally concluded" that the proposed deal would not reduce competition in the console gaming market. 
"The [Competition and Markets Authority] has provisionally concluded that the anticipated acquisition by Microsoft Corporation of Activision Blizzard, Inc. will not result in a substantial lessening of competition in relation to console gaming in the UK," the agency wrote in a statement. 
The regulatory agency did not say whether the proposed deal, which would see Microsoft (NASDAQ:MSFT) acquire Activision (ATVI) for $69B in cash, would impact the cloud gaming market.
The CMA is slated to issue a final report on the matter by April 26.
Microsoft Vice Chair and President Brad Smith said the company appreciates the additional analysis put forth by the CMA. 
"Its update underscores a growing consensus by those with access to the most current data that this deal will create more competition in the console market, not less," Smith said in a statement.
Microsoft (MSFT) shares were fractionally higher on Friday. 
The announcement marks somewhat of a turnaround, when the CMA said last month the deal would result in a "substantial lessening of competition" in gaming consoles and cloud gaming services in the U.K.
Lawyers for Microsoft (MSFT) recently met with the agency to discuss proposals to allow the deal to go through.
Last month, Microsoft (MSFT) Corporate Vice President and Deputy General Counsel Rima Alaily told Seeking Alpha the company is committed to offering "effective and easily enforceable solutions" that address the CMA's concerns. 
"Our commitment to grant long term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the dealâs benefits to gamers and developers and increases competition in the market," Alaily said at the time. 
The Microsoft (MSFT)-Activision (ATVI) deal has come under intense scrutiny across the globe, including in the U.S. by the Federal Trade Commission.
Brazil approved the transaction in October while Chinese game developers were said to give positive feedback on the deal last month. One third-party in China expressed concern about the deal, Seeking Alpha previously reported.
Microsoft (MSFT) recently signed deals with Nintendo (OTCPK:NTDOY) and Nvidia (NVDA) to bring games to their respective platforms, including Call of Duty, opening up the popular game to more than 150M new players.
The lone holdout continues to remain Sony (SONY), which has repeatedly expressed concern about the deal.
Last month, Morgan Stanley said investors should buy Activision (ATVI) as it could become an activist target if the Microsoft (MSFT) deal goes awry.