Caitlyn Taylor July 19th, 2023 - 8:53 AM
Microsoft and Activision Blizzard have officially confirmed the extension of it’s merger deadline to October 18th after missing it’s original deadline yesterday, July 18, 2023. The extension was due to the talks with the UK’s Competition and Markets Authority (CMA), a regulator that originally moved to block the deal due to its concerns over the deals affect on cloud gaming.
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
According to The Verge, the UK’s Competition Appeal Tribunal (CAT) ruled on Monday to allow Microsoft and CMA to negotiate terms close the deal and pause the appeal process. The CMA has until Thursday to file evidence to the CAT to officially put the appeal on pause.
Microsoft Vice Chair (VC) and President Brad Smith revealed that the termination fee for Microsoft will increase to 3.5 billion if the deal were not to close by August 29, 2023. The fee would also increase to 4.5 billion by September 15, 2023 if it failed to close by then.
Regardless, Microsoft and Activision Blizzard remain confident on their ability to finalize the deal, both parties confirming to not terminate the deal until after the deadline in October.
Activision Blizzard’s CCO and EVP of corporate affairs Lulu Cheng Meservey tweeted her expectations on the deadline extension, remaining confident that the 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
Additionally, Activision Blizzard CEO Bobby Kotick shared similar confidence in the extension in a company email.
“This merger is great for players, workers, and our business, and it will create opportunities to compete against companies with large talent pools, strong IP and complete control of their markets,” said Kotick. “Our merger is cleared to close in over 40 countries already, and we remain confident in resolving any remaining regulatory concerns in the UK.”
