Extended Deadline for Microsoft-Activision Blizzard Merger Agreement
Microsoft and Activision Blizzard have decided to extend the deadline for their merger agreement. Originally set for July 18, the new deadline is now October 18. This extension is aimed at allowing additional time to address any remaining regulatory concerns.
In a statement by Microsoft president Brad Smith, he emphasized that they will fulfill all commitments made with the EC and other regulators. Furthermore, they will continue to work with the CMA regarding the issues raised in the UK. Smith expressed confidence in successfully completing the deal.
Microsoft recently achieved a victory in a court case against the FTC, which denied a preliminary injunction on the merger. Shortly after this decision, Microsoft and the UK’s CMA resumed discussions after the CMA had previously blocked the deal earlier this year.
Activision Blizzard CCO Lulu Cheng Meservey stated in a statement that the companies’ boards of directors have authorized not terminating the deal until after October 18. This decision is based on the companies’ confidence in obtaining global regulatory approvals and the belief that the CMA now recognizes available remedies to address their concerns in the UK. Meservey expressed certainty in the deal closing swiftly.
Xbox head Phil Spencer also expressed optimism in completing the deal, as mentioned in his tweet. It is important to note that termination fees increase in exceptional circumstances. If the agreement falls through, Microsoft will have to pay $3.5 billion starting on August 29, which then increases to $4.5 billion on September 15.
The Future of Xbox
Despite the billion-dollar pressure, the Microsoft-Activision Blizzard deal seems to be proceeding smoothly. After the FTC ruling, it appears highly likely that Activision Blizzard will become part of the Xbox brand by the end of the year.
The next significant date to watch is August 29, which is the updated final order date set by the CMA, as mentioned in this article.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.