The UK's competition watchdog says Microsoft's revised offer to buy the Call of Duty maker Activision Blizzard opens the door to the deal being cleared.
The Competition Markets Authority says the updated deal appeared to address concerns it had raised.
Under the new proposals, Microsoft will not buy the cloud gaming rights owned by Activision Blizzard. Its original $69bn deal was blocked by UK regulators.
Under the new offer, Microsoft agreed to transfer the rights to stream Activision games from the cloud to the French video games publisher Ubisoft for 15 years.