Game Changer: Microsoft and Activision Blizzard Push Acquisition Deadline for Epic Collaboration

Microsoft and Activision Blizzard have agreed to extend the deadline for their acquisition deal until October. The initial deadline, which was set for July 18, had to be delayed due to legal issues faced by both companies.

In January 2022, Microsoft announced its plan to acquire Activision Blizzard for $68.7 billion. This would be the biggest acquisition in gaming history and would bring popular games like Call of Duty, Diablo, Warcraft, and Candy Crush Saga to Xbox. However, this acquisition raised concerns among antitrust bodies in various countries, particularly in relation to competition with Sony's PlayStation.

While some governmental antitrust bodies approved the acquisition, others expressed hesitation. The U.S. Federal Trade Commission attempted to block the deal to prevent Microsoft from impeding competition, while the U.K.'s Competition and Markets Authority requested additional assurances that Activision Blizzard games would still be available on platforms other than Microsoft's.

The deadline for the acquisition agreement between Microsoft and Activision Blizzard has been extended from July 18 to October 18, 2023. This three-month extension allows both companies more time to finalize the deal. As part of this new deadline, Activision Blizzard has received additional guarantees in case Microsoft decides to terminate the agreement. The termination fee payable to Activision Blizzard will increase from $3.0 billion to $3.5 billion if the transaction is terminated after August 29, and to $4.5 billion if the transaction is terminated after September 15. Alongside these changes, the new agreement also includes amendments to certain arrangements between Activision Blizzard and Microsoft. These amendments may involve the availability of Call of Duty games on PlayStation and Nintendo Switch.

Following the denial of the U.S. Federal Trade Commission's appeal to block the merger, Microsoft has decided to extend the deadline for the acquisition of Activision Blizzard. The companies have faced legal challenges in finalizing their deal, leading to the necessity of pushing back the deadline to properly outline the terms of this groundbreaking acquisition.

The next course of action for Microsoft and Activision Blizzard entails addressing the concerns of the U.K.'s Competition and Markets Authority regarding unfair competition in the gaming industry. Once a resolution is reached, there should be no hindrance to Microsoft's acquisition of Activision Blizzard.

Source: Activision Blizzard