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Microsoft and Activision Blizzard agree three-month extension for their proposed mergerThe never-ending acquisition
The never-ending acquisition
Image credit:Activision
Image credit:Activision
Activision Blizzard’s CCO Lulu Cheng Meservey announced the three-month extension onTwitter. Meservey said that the board of directors from both companies approved the new deadline following global regulatory approvals andongoing renegotiationswith the UK’s Competitions And Markets Authority (CMA). Microsoft now needs to close the deal before October 18th or pay a termination fine that could cost billions.
Xbox boss Phil Spencertweeted: “We’re optimistic about getting this done and excited about bringing more games to more players everywhere.”
Meanwhile, Smith shed more details about the postponed deadline and termination fees. The fine will increase to $3.5 billion after August 29th, and jump up to $4.5 billion after September 15th. Smith alsoaddedthat they’ll “honor all commitments agreed upon with the [European Commission] and other regulators, and continue to work with the CMA on the issues raised in the UK.” In closing, he also said the company was “confident” about closing the buyout.
Renegotiating a deal for the CMA is one of Microsoft’s last regulatory hurdles before finishing the deal. The British regulator hadpreviously blockedthe deal due to concerns around the fledgling cloud gaming market, but after the US Federal Trade Commissionlost their court battlewith Microsoft last week, the deal seems more likely than ever to close, for better orfor worse.
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