Microsoft and Activision Blizzard extend deal deadline to October

Microsoft's deadline to complete its proposed $69 billion acquisition of Activision Blizzard has been extended by three months to October.

Sean Carey

Published 19 Jul 2023

As confirmed in a tweet by Xbox boss Phil Spencer, Microsoft and Activision Blizzard have agreed to extend the merger agreement deadline to October 18, 2023. The deadline extension comes after the deal failed to meet its original deadline date of July 18, 2023, due to various legal challenges from regulators across the world.

As the deal wasn't completed by July 18, both parties were technically free to walk away from the merger, and Microsoft would have had to pay Activision Blizzard a break-up fee of $3 billion. Thankfully, Microsoft and Activision Blizzard are committed to seeing the acquisition through.

Microsoft's Activision Blizzard deal deadline extended by three months

Microsoft and Activision Blizzard extend deal deadline to October

"Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18, Spencer said. "We're optimistic about getting this done, and excited about bringing more games to more players everywhere."

Regulators in the US and the UK have pushed back hard against the deal, causing significant delays in the acquisition process. While Microsoft recently won a court battle against the US Federal Trade Commission that gave the company permission to close out the merger, the UK's Competition and Markets Authority blocked the deal, which Microsoft later appealed. Now, both Microsoft and the CMA have agreed to put the appeals process on hold] while they try to reach an agreement. The CMA has said it will issue a final order on the deal by August 29, 2023, so it's possible the deal could potentially close then. Microsoft and Activision Blizzard have also agreed to a new break-up fee that will increase to $3.5 billion if the deal falls through after August 29, 2023, and to $4.5 billion should it collapse after Septemeber 15, 2023.

Microsoft president Brad Smith said on Twitter, "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 issues raised in the UK. We are confident about our prospects for getting this deal across the finish line."

Industry News

Written by Sean Carey

With a deep love for Xbox and achievements, Sean has committed to playing the best RPGs, racing games, and first-person shooters Xbox Game Pass and his precious free time will allow. Prior to joining TrueAchievements, Sean gained a degree in journalism from Solent University.