Microsoft and Activision Push Back Acquisition Deadline to October 18

Microsoft and Activision have reached an agreement to prolong the acquisition timeline. Initially set to conclude by July 18, 2023, the deal has faced regulatory obstacles, prompting the two companies to negotiate an extension. As part of its latest financial report, Activision revealed that a new deadline of October 18, 2023, has been established. Should the acquisition not be finalized by this date, Microsoft will be required to pay a termination fee, which has been increased from $3 billion to a potential $4.5 billion if the deal is cancelled or expires after September 15. Despite this, both parties remain confident that the acquisition will be completed within the allotted timeframe. Phil Spencer, head of Xbox gaming, expressed his optimism on Twitter, stating, 'We're hopeful about completing this deal and thrilled about the prospect of bringing more games to a broader audience worldwide.' The acquisition has garnered approval in approximately 40 global markets, with the European Union having given its approval earlier this year. The deal's progression is now contingent upon approval from three key regions: the United States, the European Union, and the United Kingdom. Although the US Federal Trade Commission initially opposed the merger, a recent US District Court ruling has removed any barriers to the deal's completion in the US. The UK's Competition and Markets Authority had previously blocked the acquisition but has since agreed to reconsider Microsoft's revised proposals, with a decision expected by August 29.