Microsoft and Activision Blizzard extend merger deadline to obtain approval in the United Kingdom

July 20, 2023 by Alex Novichenko

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.

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.