Microsoft and Activision Blizzard have announced their decision to extend the proposed acquisition and merger from July 18 to October 18 “to provide ample time to work through the final regulatory issues.” Due to the extension, Activision Blizzard will have to pay $0.99 per share to its shareholders. If the acquisition isn’t completed by August 25, or is terminated, Microsoft will have to pay a termination fee of $3.5 million, and if it does not close by September 15, the company will have to pay a $4.5 billion termination fee. Microsoft has still yet to gain the approval for its acquisition from the UK’s Competition and Markets Authority (CMA). The company recently won its court case against the FTC over its proposed acquisition allowing it to proceed in the US.
Together with @Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues. We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the… pic.twitter.com/QZklZC20ZG
— Brad Smith (@BradSmi) July 19, 2023
Microsoft Gaming CEO Phil Spencer statement:
“Microsoft and Activision Blizzard have extended the merger agreement deadline to October 18. We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.”
Judge Corley’s statement regarding their decision on the case:
Microsoft’s acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision’s content to several cloud gaming services. This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.
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