Microsoft extends $69B Activision Blizzard merger deal deadline, overcoming regulatory hurdles

economictimes.indiatimes.com:

Microsoft Corp. has taken a strategic step in its pursuit of acquiring Activision Blizzard by extending the agreement for the $69 billion acquisition until October 18, 2023. The extension aims to overcome remaining regulatory obstacles and create one of the largest video game developers globally. Negotiations led to revised terms, including termination fees, in case the deal does not go through after specific dates. The original deadline for the $69 billion acquisition of Activision Blizzard by Microsoft was set for July 18. However, to address regulatory concerns and ensure a smooth merger process, both companies have agreed to extend the deal deadline until October 18, 2023. This extension allows them to navigate and resolve any remaining hurdles.

As part of the revised agreement, Microsoft has agreed to pay Activision Blizzard an increased amount should the merger deal be terminated after certain dates. If the deal is canceled after August 29, Microsoft will pay Activision Blizzard $3.5 billion, and if canceled after September 15, the amount will be $4.5 billion. It is important to note that the termination fee will only be applicable if the merger deal fails to close. An Activision Blizzard spokesperson expressed confidence in the deal and its benefits for competition, players, and the future of gaming. The recent approvals by regulatory bodies in the U.S. and 40 other countries validate the deal's potential. Furthermore, the companies believe that the Competition and Markets Authority (CMA) in the UK now recognizes the available remedies to address any concerns, adding to their confidence in successful deal closure.

For the deal to be finalized,