Microsoft and Activision Blizzard Agree To Extend Merger Agreement
They now have until to October 18
Microsoft and Activision Blizzard have agreed on extending the merger agreement as they now look again to the UK. The deal is now set to be finalized on October 18, leaving three months for the details to be finalized. This is likely because the deal was initially meant to close yesterday, July 18.
“Microsoft and Activision Blizzard have extended the merger agreement deadline to October 18,” Microsoft Gaming CEO Phil Spencer tweeted. “We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.”
Microsoft’s Vice Chair and President Brad Smith said the extension was “to provide ample time to work through the final regulatory issues.”
Microsoft and Activision Blizzard have also agreed to pay a higher termination fee and new commercial arrangements as a stipulation of the extension. If Microsoft was to cancel the merger after August 29, 2023, the fee paid to Activision Blizzard is $3.5 billion and $4.5 billion if the transaction was terminated after September 15, 2023.
Given the CMA blocked the merger in April over cloud gaming concerns, the three-month extension allows Microsoft to appeal the decision from the CMA, and it seems like it may sell off the cloud gaming rights in the UK.