Microsoft And Activision Blizzard has reached an agreement to extend the deadline for completing its $69 billion merger to October 18. The two companies originally agreed to close the biggest gaming deal in history by July 18.
The move will come as a relief to both the companies that are looking to get approval from the UK’s Competition and Markets Authority (CMA).CMA, Recently, the US Federal Trade Commission (FTC) also tried to block the acquisition but the courts rejected the appeal twice (first by a federal judge and then by an appeals court).
increase in termination fee
The companies have also agreed to increase the deal termination fee from $3 billion to $3.5 billion if the deal doesn’t close by August 29, according to Activision. If the deal doesn’t close before September 15 and he backs out, he will have to pay $4.5 billion.
Meanwhile, the UK antitrust body, which had previously blocked the deal, reversed its stance last week and extended its deadline for a final decision to August 29.
CMA and FTC concerns
While the FTC said the deal could harm Microsoft, the quality or player experience of Activision’s games on rival consoles such as Nintendo and Nintendo. Sony‘S Play Station, It also states that the company may manipulate pricing or change the terms or timing of access to Activision content.
Meanwhile, the CMA questioned whether the deal could hinder competition in the cloud gaming industry. The CMA said the parties “may choose to restructure the deal, which could lead to a new merger investigation.”
It added, “Microsoft and Activision have indicated they are considering how the transaction might be modified, and CMA stands ready to join them on that basis.”
Microsoft responded to these concerns by offering 10-year licensing deals to rival cloud competitors and console companies. These include Nvidia, Nintendo, PlayStation and Boosteroid, among others.
The move will come as a relief to both the companies that are looking to get approval from the UK’s Competition and Markets Authority (CMA).CMA, Recently, the US Federal Trade Commission (FTC) also tried to block the acquisition but the courts rejected the appeal twice (first by a federal judge and then by an appeals court).
increase in termination fee
The companies have also agreed to increase the deal termination fee from $3 billion to $3.5 billion if the deal doesn’t close by August 29, according to Activision. If the deal doesn’t close before September 15 and he backs out, he will have to pay $4.5 billion.
Meanwhile, the UK antitrust body, which had previously blocked the deal, reversed its stance last week and extended its deadline for a final decision to August 29.
CMA and FTC concerns
While the FTC said the deal could harm Microsoft, the quality or player experience of Activision’s games on rival consoles such as Nintendo and Nintendo. Sony‘S Play Station, It also states that the company may manipulate pricing or change the terms or timing of access to Activision content.
Meanwhile, the CMA questioned whether the deal could hinder competition in the cloud gaming industry. The CMA said the parties “may choose to restructure the deal, which could lead to a new merger investigation.”
It added, “Microsoft and Activision have indicated they are considering how the transaction might be modified, and CMA stands ready to join them on that basis.”
Microsoft responded to these concerns by offering 10-year licensing deals to rival cloud competitors and console companies. These include Nvidia, Nintendo, PlayStation and Boosteroid, among others.