Deadline For Microsoft, Activision Blizzard Merger To Be Postponed

Following Microsoft’s Success with the FTC over its acquisition of Activision Blizzard, there was only one hurdle left in the form of the UK’s Competition and Markets Authority. Unfortunately for the two, appealing against the CMA has required the July 18th deadline to be officially pushed back to October 18th.

Activision Blizzard Merger Deadline Pushed Back

As reported by IGN, it has been officially revealed that the merger which was due to be completed by July 18th, has been pushed back to October 18th or Microsoft will be forced to pay several billion dollars in a reverse termination fee. The information was officially shared by Activision Blizzard CCO and EVP of corporate affairs Lulu Cheng Meservey on Twitter with both companies hoping the approval of 40 countries will sway the CMA’s concerns and approve the merger by October 18th. Microsoft President Brad Smith revealed the costs that the company faces in termination fees if the deal isn’t closed. If the deal isn’t closed before August 29th, Microsoft will have to pay $3.5 Billion and $4.5 Billion if it doesn’t close before September 15th which is an increase over the original $3 billion. Smith also states that “We are confident about our prospects for getting this deal across the finish line.” and that the CMA will agree to the proposed solutions to their concerns.

In the coming months, we could either see Microsoft lose some money or the deal finally goes through after more than a year since it was first announced. I’m fairly confident that the CMA will allow it through seeing as they’re the last ones standing but it will be a relief for this long dragging deal to finally end.