Microsoft and Activision Blizzard extend merger deadline to obtain approval in the United Kingdom
The planned merger between Microsoft and Activision Blizzard, which was initially set for July 18, has been officially extended by three months. This announcement was made by Lulu Cheng Meservey, the Chief Corporate Officer of Activision Blizzard and Executive Vice President of Corporate Affairs, via Twitter. Now, if Microsoft fails to complete the deal before October 18, the companies will be required to pay a substantial termination fee amounting to several billion dollars.
Update on Activision Blizzard’s merger with Microsoft: agreement deadline extended
— Lulu Cheng Meservey (@lulumeservey) July 19, 2023
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…
Microsoft's President, Brad Smith, also provided additional information about the deal in another tweet. Notably, the termination fee has been increased from the original $3 billion. If the deal doesn't close before August 29, Microsoft will have to pay Activision Blizzard $3.5 billion, and if it fails to close before September 15, the amount will rise to $4.5 billion.
The decision to increase the termination fee demonstrates Microsoft's confidence in the merger and provides Activision Blizzard with additional assurances during this extended negotiation period.
