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“We’re optimistic about getting this done.”
Microsoft and Activision Blizzard have extended the deadline of their proposed merger until 18th October this year.
The self-imposed deadline was originally 18th July (yesterday), after which Microsoft would owe Activision Blizzard a $3bn fine.
It seems this has been renegotiated, as Xbox boss Phil Spencer dropped news of the new deadline on Twitter.
“We’re optimistic about getting this done, and excited about bringing more games to more players everywhere,” he said.
Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.
— Phil Spencer (@XboxP3) July 19, 2023
The holdup is, of course, to find a remedy with the UK’s CMA which blocked the deal due to concerns about a monopoly on cloud gaming.
Last week the CMA extended its deadline on a final decision to take into account a new “detailed and complex” proposal from Microsoft with changes in circumstances.
The CMA will now take a further six weeks, with a revised deadline of 29th August.
“The recent decision in the US and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” said Activision Blizzard’s CCO and EVP of corporate affairs Lulu Cheng Meservey.
“Given global regulatory approvals and the companies’ confidence that CMA now recognises there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorised the companies not to terminate the deal until after October 18.
“We’re confident in our next steps and that our deal will quickly close.”
Update on Activision Blizzard’s merger with Microsoft: agreement deadline extended
The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming.
Given global regulatory approvals and the…
— Lulu Cheng Meservey (@lulumeservey) July 19, 2023
Microsoft’s vice chair and president Brad Smith shared further details on a payout, should the deal still fail. If it doesn’t close by 29th August, Microsoft will owe Activision Blizzard a termination fee of $3.5bn. That will increase to $4.5bn if the deal doesn’t close by 15th September. Any termination fee will only be paid if the deal fails to close.
These numbers show Microsoft’s confidence in closing the deal successfully.
Together with @Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues. We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the… pic.twitter.com/QZklZC20ZG
— Brad Smith (@BradSmi) July 19, 2023
Last week in the US, the FTC’s final attempt to block the deal in court failed, with the Ninth Circuit Court of Appeals shutting down a request for emergency relief.
And, as we reported today, a last ditch attempt by gamers to block the deal has been denied by the Supreme Court.
Now it’s over to Microsoft and Activision Blizzard to wrap up a revised deal to please the CMA ahead of its October deadline.
