Microsoft nears takeover of 'Call of Duty' maker Activision

British regulators on Friday dropped their objections to Microsoft's attempt to buy video game firm Activision Blizzard, the maker of "Call of Duty", paving the way for the US tech titan to close one of the biggest technology acquisitions ever.

Microsoft launched its blockbuster $69-billion takeover in January last year, an acquisition that would make it the world's third-largest gaming company by revenue, but it faced stiff scrutiny from US regulators and the UK's Competition and Markets Authority.

The CMA blocked the deal in April over fears it would damage competition in the fast-growing cloud gaming sector, where games are bought virtually and players can use a variety of devices rather than just consoles.

Microsoft eventually submitted a new bid that the CMA said in a statement on Friday had made important changes and "opens the door to the deal being cleared", adding that it would consult on the "remedies" before making a final decision.

Both the companies involved in the deal praised the CMA's change of heart.

Microsoft vice chairman and president Brad Smith, who had labelled the initial rejection in April as "probably the darkest day" of the firm's time in the UK, called Friday's statement a "positive development".

He said Microsoft would aim to get approval to close the deal by October 18.