Microsoft and Activision-Blizzard have jointly agreed to extend the deadline for the planned merger between both companies to October 18, 2023.
Xbox boss Phil Spencer and Microsoft’s Vice President Brad Smith shared the news on Twitter just now. “Together with Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues”, Smith writes on Twitter. “We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the issues raised in the UK. We are confident about our prospects for getting this deal across the finish line.”
Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.
— Phil Spencer (@XboxP3) July 19, 2023
In a note to employees, Phil Spencer said that the extension will give both parties additional time to resolve the remaining regulatory concerns from the CMA. “While we can technically close in the United States due to recent legal developments, this extension gives us additional time to resolve the remaining regulatory concerns in the UK”, Spencer wrote in the note.
The Xbox Head added, “I want to thank everyone for your time and energy in support of the regulatory process and on all the great work coming to fruition for Xbox this year. Players around the world will be delighted with the incredible lineup of games launching in the next few months, including Starfield and Forza Motorsport. It is also great to see the fantastic work the ABK teams are delivering for their players with the successful launch of Diablo IV and the ongoing performance of Call of Duty: Modern Warfare II, and we congratulate them on their accomplishments.”
Down below we’ve included a screenshot of the merger agreement extension, which mentions that both parties have agreed “that the deal termination fee is not subject to any condition other than failure to close”. In addition, the document mentions that the termination fee has been increased from $3 billion to $3.5 billion and $4.5 billion respectively. “If the deal does not close by August 29, 2023, the termination fee payable by Microsoft if the agreement is terminated will increase from $3 billion to $3.5 billion. If the deal does not close by September 15, 2023, it will increase from $3.5 billion to $4.5 billion. Any termination fee will only be paid if the deal fails to close.
Last week, Microsoft beat the FTC’s request for a preliminary injection to block the heavily-discussed Microsoft Activision-Blizzard megadeal. Following these events, Sony and Microsoft finally signed a 10-deal to keep Call of Duty on PlayStation platforms.
