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The Microsoft merger saga turns another page as the company’s proposed acquisition of Activision Blizzard has now been extended. Microsoft will now have until October to finalize the Activision Blizzard merger.
The deal, which is worth a whopping $68.7 billion, initially had to be completed by July 18. But following last week’s denial of the FTC’s request for appeal on the preliminary injunction case, Microsoft and the UK’s CMA agreed to pause their ongoing legal battle and revisit terms. The CMA said it would agree to further discussions with Microsoft. To see if an agreement could be reached that would satisfy both parties. Initially the CMA disapproved of the acquisition. But it’s now willing to open up talks again to see if things can’t be restructured in a way that not only benefits Microsoft but addresses its concerns.
The CMA also said that extending the deal might open Microsoft’s deal up to another investigation. While there’s no word on that currently, the deal’s finalization date is being pushed out. This gives Microsoft even more time to iron out any wrinkles. And perhaps get the CMA to a place where it reverses its decision to block the deal. Amidst these changes, Xbox CEO Phil Spencer says he’s “optimistic” about the deal being approved. A sentiment that Activision Blizzard CEO Bobby Kotick has shared numerous times over the past year.
The Microsoft Activision merger deadline is now October 18
With the deal now pushed out to October 18, a few other details have been changed up as well. Microsoft doesn’t just have more time to finalize the deal. It’s also increasing the breakup fee if the deal falls through or if either it or Activision decide to walk away.
If the deal isn’t finalized by August 29, the fee is increased to $3.5 billion. And if it isn’t finalized by September 15, then the fee is increased to $4.5 billion, The Verge reports. Granted, that fee is simply there as a means to ensure Activision gets something if things don’t work out. But it certainly wants the acquisition to happen.
And Microsoft appears to be pulling out all the stops to get things done. According to the report, Microsoft is tinkering with the idea of selling off cloud rights in the UK to get the deal approved.