Microsoft has been given the green light for its $69bn (£56bn) takeover of Activision Blizzard after regulators overturned an earlier decision to block to deal.

The Competition and Markets Authority (CMA) said it would approve the merger after Microsoft stripped out the Call of Duty maker’s cloud streaming rights from its plans.

The CMA said it would grant its assent “subject to the condition that the sale of Activision’s cloud streaming rights completes prior to completion of the merger”.

Microsoft said in August that it would offload Activision’s cloud streaming rights for PC and console games to video game publisher Ubisoft.

The CMA blocked Microsoft’s original effort to buy Activision in April, saying it would give the tech giant a stranglehold on the fast-growing cloud gaming market.

The decision prompted claims from Activision that Britain was “closed for business”.

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