Microsoft and Activision Blizzard Extend Merger Agreement, New Deadline Set

Activision Blizzard and Microsoft now have awhile longer to close out their deal as the two seek a resolution with UK regulators. The previous deadline would've seen the deal finalized in some way or another by today, July 19th, but now, the two parties have until October 18th to figure things out. The next -- and seemingly final -- hurdle in the meantime is reaching an agreement with the UK's Competition and Markets Authority. This delayed deadline was expected prior to the announcement, so Xbox or Activision fans who want to see the deal go through were probably already prepared for such an outcome.

The delayed deadline was confirmed in a press release from Activision Blizzard that doubled as the company's announcement of its financial results for the second quarter. The statement included in the release communicated the new deadline while saying that the two parties had upped the termination fee payable if one party backs out.

"On July 18, 2023, Activision Blizzard and Microsoft entered into an agreement waiving certain rights to terminate the merger agreement if the merger has not been consummated prior to October 18, 2023," the announcement said. "The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3.0 billion to $3.5 billion if the transaction is terminated after August 29, 2023, and to $4.5 billion if the transaction is terminated after September 15, 2023."

Lulu Cheng Meservey, the CCO and EVP of corporate affairs at Activision Blizzard who's been active on social media throughout the course of these debates and discussions about Microsoft acquiring the publisher, commented on the new deadline after it was set and said the two companies remain confident in their ability to reach a resolution. 

"Update on Activision Blizzard's merger with Microsoft: agreement deadline extended," she said. "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."

Microsoft recently won its court case against the Federal Trade Commission after the latter opposed the acquisition. The FTC naturally attempted to appeal the decision but was denied.