Microsoft and Activision agree to October merger deadline extension

Robert Collins

Microsoft Activision Blizzard Custom

Microsoft and Activision have agreed to extend their merger deadline to October 18 as negotiations continue with the CMA. The original deadline expired yesterday, July 18.

The two companies also agreed to up the termination fee from $3 billion to $3.5 billion if either party should walk away from the deal (which at this point would be extremely unlikely).

At present, Microsoft and the U.K. market regulator have agreed to pause litigation of Microsoft’s appeal (the CMA blocked the deal back in April) as the two parties work to reach a compromise over the CMA’s concerns over the cloud gaming market. Some are speculating that Microsoft may elect to sell off rights to its cloud gaming services in the U.K.

Microsoft president Brad Smith tweeted that the extension would “provide ample time to work through the final regulatory issues…We are confident about our prospects for getting this deal across the finish line.”

In all likelihood the deal will finally close much sooner than this new deadline. The CMA’s final order date is now August 29.

Featured image via Forbes.