Microsoft’s Activision Blizzard acquisition has been in progress for over a year. The gaming giant recently won the court case against FTC, but the deal is yet to be closed.
Following the loss, the FTC has been called out for wasting tax money on Activision’s appeal. As of now, things are looking good for Microsoft, and people expect it to complete the merger soon.
However, the gaming giant had set a deadline of July 18 for the acquisition. This deadline for the deal has passed, but the gaming giants have agreed to change the date, extending the agreement to October.
Why it matters: Following the deadline, either company was free to walk away from the acquisition, but reports had already indicated that they would agree to an extension.
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…
— Brad Smith (@BradSmi) July 19, 2023
While Microsoft has already cleared the hurdles from the FTC, the CMA remains a significant problem.
The CMA recently agreed to hold discussions with Microsoft, but the regulator is looking to carry out further investigations. This would drag the deal for a few more weeks, with a conclusion seeming likely in the coming months.
According to Brad Smith, the extension should provide enough time to deal with these issues. This should also mean any remaining countries can deliver their final verdict on the deal before the deadline.
Sony and Microsoft have also signed an agreement. This guarantees future Call of Duty titles on PlayStation for a decade. However, the contract does not concern other Activision games, potentially hinting at various Activision exclusives for Xbox.
Nonetheless, the merger’s success is all but guaranteed. With a new deadline in place, the next few months could bring massive announcements from Microsoft and Activision.
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