Yesterday was supposed to be the deadline for Microsoft to close its acquisition of Activision Blizzard, but the two companies have extended the merger agreement deadline to October 18. “Microsoft has received a clear path in nearly all major markets, except for the U.K., where it is still dealing with the CMA’s decision. Most recently, Microsoft got a huge win towards closing its deal, when the FTC’s motion for a preliminary injunction to halt the acquisition was denied.
Currently, it feels more like a “when” than an “if” for the acquisition to get approved, but when it does, it will be the largest technology deal in history. The new agreement’s terms include an increase in the possible termination fee if the deal fails to close. Activision Blizzard would receive $3.5 billion (up from $3 billion) if the deal is terminated after August 29. That fee increases to $4.5 billion if the merger is terminated after September 15. So yes, Microsoft has a few billion reasons to ensure this deal is completed.
For those who have been following the saga, it’s worth noting that the CMA has pushed back its deadline for a final decision to August 29. The CMA is currently considering a submission from Microsoft. Reports indicate that Microsoft and Activision are considering relinquishing some control of their cloud gaming business in the U.K. in order to gain approval.
