Microsoft And Activision Blizzard Extend Deadline To Complete Acquisition To October

Microsoft and Activision Blizzard will have to wait until the end of October before they can complete their merger. 

Microsoft and Activision Blizzard have agreed to extend their merger agreement to July 18, 2023. This gives both companies approximately three months to finalize this acquisition. As for why, Microsoft says it is “to allow for additional time to resolve remaining regulatory concerns.” 

Microsoft’s vice-chairman and President Brad Smith tweeted, “Together with Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through final regulatory issues. All commitments made to the EC or other regulators will be honored. CMS and CMS continue working together on issues in the UK. We are confident about our prospects for getting this deal across the finish line.” 

Smith mentions Microsoft’s ongoing wrinkles in the U.K. where the Competition and Markets Authority blocked the acquisition in April citing concerns over cloud gaming. A California Judge denied the Federal Trade Commission’s move for a preliminary injunction in the U.S.-based regulatory agency’s case against the acquisition. Microsoft was given the go-ahead to purchase Activision Blizzard from the FTC in the U.S. after the FTC appealed the decision. 

Microsoft, despite receiving approval from the European Commission for the CMA deal, must contend with it. Either they reach an agreement or leave the U.K. off the deal. Microsoft has announced that it will not appeal against the CMA after last week’s win against the FTC. Instead, it is negotiating a deal with the U.K. regulator agency. 

In the beginning, CMA was given until July 18, 2023 to come up with a possible new ruling on this purchase. The CMA has extended the deadline for this acquisition by six weeks, to August 29th 2023. Microsoft will likely seek an agreement with CMA in order to obtain approval in the U.K. Microsoft has more time in which to resolve this issue in the U.K. 

Microsoft and Activision Blizzard failed to meet the deadline of July 18, yesterday. But now we know it’s because both parties have agreed to extend the deadline to October 18, which should be enough time to sort through wrinkles in the U.K. Of course, only time will tell. 

Xbox’s Phil Spencer adds on Twitter, “We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.” 

Activision Blizzard CEO Bobby Kotick sent the following letter to employees: 

Team, 

Many of you may have some questions regarding our merger with Microsoft. Activision Blizzard, and Microsoft have both agreed that the merger will not be terminated until October 18, based upon our confidence of closing the deal.

The merger will benefit players, employees, and the business. It’ll give us a chance to compete with companies that have large talent pools and strong IP, as well as complete market control. We have already received approval for our merger to close in 40 different countries. And we’re confident of addressing any regulatory concerns that may remain in the UK. 

Your patience is appreciated. Thank you as always for all your hard work and dedication. I’ll share more updates as we have them. 

With thanks  

Bobby

To catch up on everything that’s happened so far, first read about Microsoft revealing it was acquiring Activision Blizzard for a colossal $69 billion, and check out this story about how the CMA blocked this acquisition in the U.K. over cloud gaming concerns. After that, read about how the FTC’s preliminary injunction request was denied by a California judge this week and then read about Microsoft’s new plans to negotiate something satisfactory with the CMA. 

Following that, the CMA extended its deadline in its case with Microsoft over the company’s proposed Activision Blizzard acquisition. After that, the FTC filed an appeal to the U.S. Appeals Court, Ninth Circuit. It was later denied. Sony and Microsoft signed a 10-year contract to maintain Call of Duty for PlayStation soon after this appeal was dismissed. We are now waiting to see what happens in the U.K. 

Think the CMA is going to reverse its course? Comment below to let us know!