Microsoft, Activision Blizzard delay acquisition in push for UK approval

Microsoft’s $68.7 billion acquisition of Activision Blizzard, the publisher of Call of Duty, World of Warcraft, and Overwatch, has been delayed past its July 18 deadline, the companies announced Wednesday. The deadline has been extended until Oct. 18 as Microsoft and Activision negotiate with the U.K.’s antitrust regulator, the Competition and Markets Authority.

The CMA blocked Microsoft’s buyout of Activision Blizzard in April, arguing that the merger would lead to “reduced innovation and less choice for UK gamers over the years to come” in the burgeoning cloud gaming market. Microsoft and Activision quickly appealed that decision, but on Monday, the Xbox maker and the CMA asked a judge to stay that process — the parties are reported to have held “productive” talks on remedies that Microsoft could agree to in order to help the deal pass. Bloomberg reports that Microsoft may be willing to sell off its U.K. rights for cloud gaming.

“Together with Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues,” Microsoft 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.”

“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,” an Activision Blizzard spokesperson said in a statement to Polygon. “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 has announced that it will acquire Activision Blizzard in January 2022, along with its mobile division King. When the acquisition was announced, head of Xbox and Microsoft Gaming CEO Phil Spencer said the deal would “make Game Pass one of the most compelling and diverse lineups of gaming content in the industry,” and bolster Microsoft’s internal game development group to 30 studios.

Sony tried to block the acquisition, saying that Microsoft withholding games or releasing inferior versions on PlayStation would lead to a decline in competition. Microsoft struck deals with multiple companies, including its console and cloud gaming competitors at Nintendo, Sony, and Nvidia, to ease regulators’ concerns about the merger.