If you thought 18 months were enough for the Microsoft-Activision deal, they weren’t. The official closing date for the Microsoft-Activision merger was yesterday. Since the deal couldn’t close due to the lingering issue with the UK regulators, the merging parties have renegotiated and updated the Microsoft Activision deal termination date to October 18.
The deal has been extended for another three months and the termination fee for Microsoft has been increased by $1.5 billion USD to a total of $4.5 billion USD if the deal fails. The termination fee is only paid if the deal cannot close before the closing date and the parties refuse to negotiate.
Activision’s CCO, Lulu Cheng Meservey believes that the transaction will finalize pretty quickly:
Update on Activision Blizzard’s merger with Microsoft: agreement deadline extended.
The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming. 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.
Update on Activision Blizzard’s merger with Microsoft: agreement deadline extended
The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming.
Given global regulatory approvals and the…
— Lulu Cheng Meservey (@lulumeservey) July 19, 2023
Currently, the main hurdle for Microsoft and Activision remains the CMA as they won against the US regulators and got approval from the EU antitrust watchdogs.
The CMA and Microsoft have had “positive discussions” and Microsoft is offering CMA a restructured transaction to appease its concerns. The UK regulator has extended the date of its final order to August 29, but hopes to discharge itself of the duty as soon as possible.
Source: SEC Filing