Activision Blizzard and Microsoft have agreed to extend the acquisition deadline into the fall to work on final regulatory issues.
The original deadline to close the deal was set for yesterday, July 18, but it was changed after meetings between the companies occurred.
Activision Blizzard stated in its Q2 2023 financial report that on July 18, the two companies entered into an agreement to move the acquisition deadline to October 18.
The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3 billion to $3.5 billion if the transaction is terminated after August 29 and to $4.5 billion if the transaction is terminated after September 15.
Both parties have agreed that the deal termination fee is not subject to any condition other than failure to close.
The agreement also includes amendments to Activision Blizzard’s commercial Xbox arrangements with Microsoft, valued at up to $250 million for fiscal years 2023 and 2024.
Per Microsoft’s vice chairman and president Brad Smith, the extension will allow Microsoft extra time to work with final regulatory issues, and to continue working with the CMA on the issues raised in the UK.
Smith said the company is “confident” about its prospects for “getting this deal across the finish line.”