Home News Microsoft and Activision Push $68.7 Billion Merger Deadline to October 18th

Microsoft and Activision Push $68.7 Billion Merger Deadline to October 18th

by admin
Microsoft Activision Merger

After a challenging 18-month journey through regulatory procedures, Microsoft and Activision Blizzard are on the brink of making their merger a reality. However, due to unresolved issues in the UK, the companies were unable to finalize their deal by their original deadline of July 18th. Consequently, they have agreed to a three-month extension to complete the $68.7 billion acquisition.

“Microsoft and Activision Blizzard have jointly decided to postpone the merger agreement deadline from July 18th, 2023 to October 18th, 2023, to provide more time to address remaining regulatory issues,” Microsoft announced in a statement.

If they had failed to agree on new terms and either party had opted to walk away (which was a possibility as of today), Microsoft would have been liable for a $3 billion dissolution fee. This cancellation fee will rise to $3.5 billion if the merger isn’t finalized by August 29th and $4.5 billion if it’s not completed by September 15th. The fee is only applicable if the acquisition does not close. Moreover, they have agreed that Activision can issue a dividend of $0.99 per share to its shareholders.

“Microsoft and Activision Blizzard are confident that we can conclude our acquisition successfully, so we have mutually decided to extend the merger agreement to October 18th, 2023,” wrote Phil Spencer, CEO of Microsoft Gaming, in a memo to employees. “Although we are in a position to finalize in the US due to recent legal developments, this extension offers us more time to resolve the remaining regulatory concerns in the UK.”

The UK’s antitrust regulator, the Competition and Markets Authority (CMA), initially rejected the deal in April over fears about its effect on the cloud gaming market (Microsoft’s contracts with third-party cloud gaming platforms were sufficient for the European Union to endorse the merger). Microsoft contested the CMA’s decision, but as the deadline approached, the CMA expressed willingness to reassess a modified merger proposal.

In an effort to amicably settle the regulator’s concerns, the CMA, Microsoft, and Activision jointly suggested a two-month postponement of their litigation to an appeals tribunal, which granted the request on Monday. The CMA has granted itself an extra six weeks, until the end of August, to scrutinize Microsoft’s revised proposal, aiming to do so as promptly as possible.

While the exact wrap-up date remains uncertain, the CMA and both companies are hoping to resolve matters soon, certainly well ahead of October 18th. One important date to monitor is August 2nd, when a Federal Trade Commission (FTC) evidentiary hearing to potentially block the deal is set to commence. The FTC’s previous attempts to secure an injunction to halt the merger were unsuccessful. However, if the deal is not closed by August 2nd and the FTC’s administrative trial starts, the situation could become more intricate for Microsoft and Activision.

Frequently Asked Questions (FAQs) about Microsoft Activision Merger

Why was the merger deadline between Microsoft and Activision extended?

The merger deadline was extended due to unresolved regulatory issues in the UK. Both companies needed more time to address these issues, hence they decided to postpone the merger agreement deadline from July 18th, 2023 to October 18th, 2023.

What is the worth of the merger between Microsoft and Activision?

The merger between Microsoft and Activision is valued at $68.7 billion.

What would be the penalty if the merger doesn’t go through?

If the merger doesn’t close, Microsoft would be liable for a breakup fee. This fee will rise from $3 billion to $3.5 billion if the merger isn’t finalized by August 29th, and to $4.5 billion if not completed by September 15th.

Who initially blocked the deal and why?

The UK’s antitrust regulator, the Competition and Markets Authority (CMA), initially blocked the deal due to concerns about its effect on the cloud gaming market.

What happens on August 2nd?

August 2nd is the scheduled start date for an evidentiary hearing in the Federal Trade Commission’s (FTC) administrative proceeding to possibly block the deal. If the deal isn’t finalized by then and the FTC’s trial begins, it could complicate matters for Microsoft and Activision.

More about Microsoft Activision Merger

You may also like


MeganTechie July 19, 2023 - 3:59 pm

ok but what happens to us gamers? Do we just wait n see? Want my Call of Duty updates on time.

BobTheGamer July 19, 2023 - 5:31 pm

hope this doesnt affect my game experience, really love what activision’s been doing recently.

GamingGeek42 July 20, 2023 - 1:42 am

Wow, what a mess. i thought this merger was gonna be smooth sailing. Guess not lol

InvestorInsights July 20, 2023 - 3:11 am

Not surprised about the delay, these things always take longer than they predict, regulatory hurdles are a pain!

VickyV July 20, 2023 - 4:39 am

Man, corporations and their power games…always a drama to follow.

CloudMaster99 July 20, 2023 - 7:37 am

Hmm, seems like the CMA ain’t playing around with the big guns. gonna be interesting to see how it plays out

StockTraderJoe July 20, 2023 - 9:01 am

Microsoft’s willing to pay a hefty breakup fee if this doesn’t go thru. they’re clearly all in on this deal. Interesting times ahead…


Leave a Comment