Microsoft And Activision Blizzard Extend Merger Until October 18
Microsoft has agreed with Activision Blizzard to extend its takeover agreement until October 18 – Microsoft will not have to pay Activision a penalty of $ 3 billion. The pause is needed to complete negotiations with UK regulators. The original deadline for the deal expired this week.
“The recent U.S. decision and approval in 40 countries confirms that the deal is in the interests of competition, gamers, and the future of the gaming industry,” Lulu Cheng Meservey, Activision Blizzard’s COO and Chief Corporate Officer, tweeted. “Given the approval of global regulators and the confidence of the companies that the CMA now recognizes the availability of remedies to address potential issues in the UK, the Boards of Directors of Activision Blizzard and Microsoft have allowed the companies not to terminate the deal until October 18th.”
According to Microsoft vice chairman and president Brad Smith, the three-month delay is intended “to provide sufficient time to work through final regulatory issues.”
Both Microsoft and Activision Blizzard have also agreed on a higher amount of compensation that one or the other party will have to pay to the other in the event of a termination of the transaction. Should either Microsoft or Activision pull out of the deal, the amount of compensation will now be $3.5 billion if the deal is terminated after August 29, rising to $4.5 billion if the deal is not closed after September 15.
However, the deal of the century in the gaming industry may end much earlier than October 18: CMA intends to make its decision by August 29.
