Microsoft and Activision Blizzard have agreed to extend its merger deadline from its original July 18 to October 18. The decision was made shortly after Microsoft signed a binding agreement with PlayStation for the Call of Duty franchise.
According to Microsoft, the extension allows the parties to have additional time to resolve remaining regulatory issues. Activision Blizzard is entitled to pay $0.99 per share to its shareholders following the merger deadline extension with Microsoft. Moreover, both parties have agreed that the deal termination fee is not subject to any condition other than failure to close. 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.
Microsoft x Activision Blizzard Merger Deadline Extended
“Together with Activision Blizzard, we are announcing the extension of our merger agreement to October 18 to provide ample time to work through the final regulatory issues,” Microsoft vice chair and president Brad Smith said 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 October 18,” said head of Xbox Phil Spencer on Twitter. “We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.”
The company’s recent binding agreement and deadline extension come just days after Microsoft was awarded the right to close the acquisition of Activision Blizzard after a legal battle with the U.S. Federal Trade Commission. FTC attempted to appeal the court’s decision, but the appeal was ultimately denied.
