Microsoft and Activision Blizzard have officially announced that they have agreed to extend the deadline of their proposed merger deadline.
Microsoft and Activision Blizzard Agree to an Extension
The new deadline for the proposed Activision Blizzard merger is now October 18, 2023. Yesterday would have been the deadline for the deal, July 18, 2023 with a fine of $3 billion if it expired. This has been changed now with the new proposed deadline after Microsoft and Activision Blizzard hashed it out.
Microsoft and Activision Celebrate
Xbox boss Phil Spencer dropped the good news on his personal Twitter account revealing the new deadline and the successful negotiation. “We’re optimistic about getting this done, and excited about bringing more games to more players everywhere,” he said.
“The recent decision in the US and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” said Activision Blizzard’s CCO and EVP of corporate affairs Lulu Cheng Meservey.
“Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18.
“We’re confident in our next steps and that our deal will quickly close.”
Last week, the UK CMA extended the deadline for the final decision on the acquisition deal with an extension of six weeks. The new deadline is now August 29, 2023.
If the Deal Fails…
Microsoft Vice Chair and President Brad Smith shared more details about the penalty if the deal still fails. If the deal does not come through by August 29, 2023 Microsoft will pay Activision Blizzard a termination fee of $3.5 billion and will increase to $4.5 billion if the deal will not close by September 15, 2023.