Microsoft Reportedly in Talks to Extend Deal Deadline to Ensure Activision Isn’t Wooed by Another Buyer
Microsoft is reportedly in talks with Activision to extend the deadline for its $69 billion acquisition.
The deadline is currently set for today, July 18th, and Microsoft owes Activision Blizzard a $3 billion reverse termination fee if it doesn’t finish by the deadline.
With the deal expiring, either Microsoft or Activision will be withdrawing from the deal. Given that both parties want it done, this is unlikely, but Microsoft wants to extend the deal “so that other potential acquirers don’t woo or change their minds.” thinking. Reuters report. Microsoft and Activision have not yet commented on this allegation.
Yesterday, a UK Court of Competition Appeals (CAT) judge stayed Microsoft’s appeal against the Competition and Markets Authority (CMA), giving both sides time to negotiate. At the hearing, the judge granted a two-month moratorium on the appeals process so that Microsoft and the CMA could resume negotiations. In April, the CMA blocked Microsoft’s offer to buy Activision Blizzard, citing cloud gaming monopoly as a reason not to close the deal. Microsoft has since appealed the decision, and the trial was scheduled to begin on July 28.
In a statement sent to IGN, a Microsoft spokesperson said: “We are grateful that the UK Court of Competition Appeals has conditionally agreed to stay the formal appeal process subject to additional information.” Stated. “As previously stated, we are looking at how we can change our deal to address CMA concerns. Microsoft and Activision Blizzard believe this is the best way forward to find a way forward quickly. So he agreed to the CMA.”
The CMA has announced that it is willing to renegotiate its deal with Microsoft after the tech giant won a large-scale merger lawsuit against the FTC. Microsoft is reportedly considering some potential sale related to its cloud gaming business to satisfy the CMA’s antitrust concerns. The UK is currently the only major jurisdiction standing in the way of the largest acquisition in gaming industry history.
Last week, Microsoft and Sony agreed to a deal to keep Call of Duty on PlayStation consoles for the next 10 years. This agreement does not contain similar promises for games other than Activision Blizzard’s Call of Duty.
Wesley is IGN’s UK news editor. Find @wyp100 on Twitter. You can reach Wesley at: wesley_yinpoole@ign.com or confidentially wyp100@proton.me.
