Microsoft is reportedly talking with Activision about extending the deadline for its buyout of the game company.
Microsoft Negotiates Extending Deadline for Deal
It was reported by Reuters that the deadline for the Activision Blizzard acquisition deal is currently set for today, July 18, 2023. If Microsoft does not meet the deadline, it will be obliged to pay Activision Blizzard a $3 billion reverse termination fee.
Letting the contract expire would let either party walk away from the deal without regrets. This is highly unlikely though since both parties want to complete the deal. Microsoft just wants to extend the contract to make sure that another potential acquirer will not woo Activision or will get a change of heart. No word yet from both parties to officially confirm or deny the claims.
UK CAT Extends CMA Decision
The UK Competition Appeal Tribunal (CAT) judge yesterday allowed Microsoft and the CMA to have two months extension to discuss issues and resolve them on their own.
“We’re grateful the UK’s Competition Appeal Tribunal has conditionally agreed to pause the formal appeal process subject to additional information,” a Microsoft spokesperson said in a statement sent to IGN. “As we’ve said before, we are considering how the transaction might be modified to address the CMA’s concerns. Microsoft and Activision Blizzard have agreed with the CMA that this is in the best interest of finding a prompt path forward.”
This is a critical time for Microsoft as it is this close to getting this deal done. It would be quite a problem if the deal suddenly gets sour between them and Activision due to another interest.