(Reuters) -Britain's antitrust regulator said on Tuesday it had opened a Phase 1 probe into a newly restructured deal by Microsoft to buy Activision , with a first deadline set for Oct. 18.

The regulator, the only major one to still object to the deal, said under the new proposal Microsoft would acquire Activision, but Activision's cloud streaming rights outside of the European Economic Area would be divested to Ubisoft Entertainment .

(Reporting by Yadarisa Shabong in Bengaluru and Kate Holton in London; Editing by Rashmi Aich and Sachin Ravikumar)