Microsoft and Activision Blizzard have received approvals from 40 countries to finalize the deal, but the subject of the UK remains. The corporations have just confirmed that they are withholding a final decision and want to close the deal globally at the same time.
Microsoft had until 8:59 to finalize the finalization of the transaction with Activision Blizzard – if the company did not take care of the details by then, the deal could fail, and the corporation would have to pay a $ 3 billion penalty.
However, Microsoft decided to get along with Activision Blizzard and extended the time to finalize the contract. According to the latest information – the transaction must be closed by October 18.
Update on Activision Blizzard’s merger with Microsoft: contract extension
The recent decision in the United States and approvals in 40 countries confirm that the deal is good for competition, players and the future of gaming.
Given global regulatory approvals and the companies’ confidence that the CMA now recognizes that remedies are available to address their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the contract until October 18.
We are confident of our next steps and that our deal will be finalized 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…
— Lulu Cheng Meservey (@lulumeservey) July 19, 2023
Phil Spencer also commented on the situation:
Microsoft and Activision Blizzard have extended the deadline to sign the merger agreement to October 18. We are optimistic about this endeavor and excited to bring more games to more players around the world.
Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.
— Phil Spencer (@XboxP3) July 19, 2023
Brad Smith confirms continuing to work with CMA:
Together with @Activision, we are announcing the extension of our merger agreement until October 18 to allow enough time to finalize final regulatory issues. We will honor all commitments agreed with the EC and other regulators and continue to work with the CMA on issues raised in the UK. We are confident that we will be able to complete this transaction
Together with @Activisionwe are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues. We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the… pic.twitter.com/QZklZC20ZG
— Brad Smith (@BradSmi) July 19, 2023
Microsoft, however, will have to pay more ($95 per share) as well the contractual penalty for termination of the contract increased to USD 5 billion.
We must definitely point out that Microsoft could officially take over Activision Blizzard yesterday – however, the corporation wants to finalize the transaction in all major markets at the same time, so it was decided to delay the contract.
Many industry observers emphasize that CMA should easily get along with Microsoft, so it was decided to change the closing date of the transaction. According to opinions, the corporation wants to receive a normal approval from the Competition and Markets Authority in order to be able to make further acquisitions without any obstacles in the future and receive the green light from the UK. Had the company closed the deal without the UK (which is possible), it could have been badly received by UK officials.
2023-07-19 13:06:52
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