Microsoft set to win EU nod on Activision with licensing offer, sources say

Activision shares, which jumped 1.8 percent in pre-market trading after the Reuters' story was published, were up 2.6 percent in late trade.

Microsoft President Brad Smith last month said the US software group was ready to offer rivals licensing deals to address antitrust concerns but it would not sell Activision's lucrative "Call of Duty" franchise.

Smith said it was not feasible or realistic to think that one game or one slice of Activision can be carved out and separated from the rest.

The EU competition enforcer declined to comment.

Microsoft said it was "committed to offering effective  and  easily  enforceable solutions  that address the European Commission's concerns."

"Our commitment to grant long-term 100 percent equal access to  Call of Duty to Sony, Steam,  NVIDIA and others  preserves the deal's benefits to gamers and developers and increases competition in the market," a Microsoft spokesperson said.

Last month, Microsoft said it had signed 10-year licensing deals with Nintendo and Nvidia that will bring Call of Duty to their gaming platforms, with the agreements conditional on a green light for the Activision deal.

The deal faces regulatory headwinds in Britain, where the UK competition agency has suggested that Microsoft divests Call of Duty to address its concerns while the U. Federal Trade Commission (FTC) has asked a judge to block the deal.