Microsoft and Activision Blizzard extend the merger agreement deadline
Additional time needed to ensure that everything goes through.
Microsoft and Activision Blizzard agreed to push back a notable deadline in the ongoing merger talks. Originally set for July 18, the merger agreement deadline for the companies has now been pushed back to October 18.
The extension should give the two sides “additional time to resolve remaining regulatory concerns,” according to a statement from Microsoft president Brad Smith.
He added: “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 recently won over the FTC in a court case, denying a preliminary injunction on the agreement. Soon after the decision was made, Microsoft and the UK’s CMA seem to went back to the table and CMA blocked the deal earlier this year.
Activision Blizzard CCO Lulu Cheng Meservey issued a statement on the matter saying: “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.”
Xbox head Phil Spencer is filled with optimism too and he expects the deal to be finalized fairly soon.
Even despite all the hurdles, it seems likely that the deal will be finalized on both sides’ satisfaction by the end of this year. But before that, we’ll see what comes out of the CMA’s updated final order date on August 29.