Microsoft and Activision Blizzard agree to extend merger agreement to October

theverge.com:

By Tom Warren, a senior editor covering Microsoft, PC gaming, console, and tech. He founded WinRumors, a site dedicated to Microsoft news, before joining The Verge in 2012.

Microsoft and Activision Blizzard have agreed to extend their merger agreement pending the outcome of negotiations with UK regulators. Both parties will now have until October 18th to finalize the transaction, after missing yesterday’s original deal deadline.

“The recent decision in the US and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” tweeted Lulu Cheng Meservey, Activision Blizzard’s CCO and EVP of corporate affairs. “Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18.”

Microsoft vice chair and president Brad Smith says the three-month extension is designed “to provide ample time to work through the final regulatory issues.”

Both Microsoft and Activision Blizzard have also agreed to a higher termination fee and new commercial arrangements for the transaction. A termination fee, payable if Microsoft or Activision walks away from the deal, is now set at $3.5 billion if the deal doesn’t close by August 29th, and it jumps to $4.5 billion if September 15th passes without a finalization.

Activision has also agreed to potentially “hold separate the Company or certain assets of the Company or to implement other lawful alternatives to consummate the Merger” with UK regulators. This is a key part, as it may allow the merger to go ahead with restrictions