Microsoft Reportedly in Talks to Extend Deal Deadline to Ensure Activision Isn’t Wooed by Another Buyer
Microsoft is reportedly in talks with Activision about extending the deadline for its $69 billion buyout of the company.
The deadline is currently set for today, July 18, with Microsoft oblidged to pay Activision Blizzard a $3 billion reverse termination fee if it fails to close in time.
The expiration of the contract would let either Microsoft or Activision walk away from the deal. While this is unlikely given both parties’ desire to complete, Microsoft wants to extend the contract “to ensure Activision is not wooed by another potential acquirer or has a change of heart”, Reuters reported. Microsoft and Activision have yet to comment on the claim.
Yesterday, a judge for the UK's Competition Appeal Tribunal (CAT) paused Microsoft's appeal against the Competition and Markets Authority (CMA), allowing both parties more time to negotiate. During a hearing, the judge granted a two-month pause on the appeal process as Microsoft and the CMA resume negotiations. In April, the CMA blocked Microsoft's proposed acquisition of Activision Blizzard, citing cloud gaming monopolization as a reason not to allow the deal to go through. Microsoft then appealed the decision, with a trial set to begin on July 28.
“We’re grateful the UK’s Competition Appeal Tribunal has conditionally agreed to pause the formal appeal process subject to additional information,” a Microsoft spokesperson said in a statement sent to IGN. “As we’ve said before, we are considering how the transaction might be modified to address the CMA’s concerns. Microsoft and Activision Blizzard have agreed with the CMA that this is in the best interest of finding a prompt path forward.”
The CMA announced it was open to renegotiating a deal with Microsoft after the tech giant won a
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