Microsoft, Activision Blizzard Extend Deal Deadline to October

Microsoft and Activision Blizzard have formally extended the deadline for their proposed $69 billion acquisition from July 18 to October 18, 2023. This extension provides the companies with additional time to resolve outstanding regulatory concerns, particularly regarding the United Kingdom’s Competition and Markets Authority (CMA). The two parties are currently utilizing a two-month pause in their legal proceedings to negotiate a compromise that addresses the CMA’s specific concerns regarding the impact of the merger on the cloud gaming market.

The revised agreement includes updated financial terms for shareholders and adjusted termination fees. Activision Blizzard shareholders are set to receive $0.99 per share. Furthermore, the termination fee structure has been modified: Microsoft will be liable for a $3.5 billion fee if the deal is terminated after August 29, which increases to $4.5 billion if the acquisition remains incomplete by September 18.

While regulatory scrutiny remains high in the United Kingdom, other jurisdictions have shown varying levels of opposition. The United States Federal Trade Commission recently failed to secure a preliminary injunction to pause the deal, and while Australia, Canada, and New Zealand maintain potential opposition, the companies remain optimistic about finalizing the merger. Microsoft has reaffirmed its commitment to satisfying regulatory requirements in the UK while maintaining its existing obligations to the European Commission and other global regulators.