The Microsoft acquisition of Activision Blizzard is still not officially completed as both companies have agreed to “extend the merger agreement,” or delay the acquisition, until October at the latest so that negotiations can continue with U.K. regulatory bodies. But both companies are eyeing a much sooner date for the deal to be closed.
Both parties now have until Oct. 18 to finalize the transaction or else it will be terminated, according to a report from The Verge’s Tom Warren. Both companies, though, are confident that the U.K.’s Competition and Markets Authority (CMA) will allow remedies that meet the body’s concerns.
One potential remedy is to “hold separate the Company or certain assets of the Company,” which would require Activision Blizzard to part ways with certain assets. But Activision Blizzard has already reportedly agreed to do so, or at the very least “implement other lawful alternatives to consummate the merger,” according to Warren.
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The deal could technically be completed now after a judge ruled in favor of Microsoft in a lawsuit brought up by the U.S.’ main regulatory body, the FTC. With this recent deadline extension, after the previous one passed yesterday, the termination fee has now been set at $3.5 billion if the deal isn’t done by Aug. 29, and it increases to $4.5 billion if not done by Sept. 15. Warren notes in his report, though, that the CMA will issue a final order on Aug. 29, suggesting both companies are eyeing that date to finally complete the deal.
Higher-ups from both companies have publicly said they are optimistic that the deal will be done, including Microsoft Gaming CEO Phil Spencer, Activision Blizzard CCO Lulu Cheng Meservey, and Microsoft vice chair and president Brad Smith.
