Microsoft and Activision Blizzard King had until July 18 to finalize their merger. However, because still do not receive the green light from the CMA —the UK regulator—, it was not possible to meet the deadline. For this reason, companies have agreed to postpone the deadline. They hope that the negotiations with the British body will not take too long.
So, now Microsoft and Activision must close the purchase, at the latest, the October 18, 2023. That is to say, three additional months have been given to bring this novel to an end. Although nothing guarantees the approval of the CMA, it is true that they have shown themselves to be more flexible in seeking a solution that satisfies all parties.
“Together with Activision, we are announcing the extension of our merger agreement until October 18 to allow sufficient time to work on final regulatory matters. We will honor all agreed commitments with the European Commission and other regulators, and will continue to work with the CMA on the issues raised in the UK. We are confident in our foresight to deliver this agreement to the finish line,” said Brad Smith, President of Microsoft.
Considering that the CMA is concerned about the possible start of a Microsoft monopoly in Cloud Gaming, surely it will be in this sector where Redmond will have to make some concessions. In fact, a recent report from Bloomberg anticipated that Microsoft could sell its gaming business in the UK. In this way, they would take the pressure off the regulator quickly.
However, before deciding how they will address the concerns of the CMA, Microsoft and Activision had to extend, yes or yes, their negotiation period. Because? Once the term expired, any of the actors involved in the purchase could withdraw. In addition, Microsoft had to pay a stratospheric fine of 3,000 million dollars for not completing the acquisition.
At Microsoft and Activision they are optimistic
Despite the fact that we are facing a new delay for Microsoft to complete the purchase of Activision, in both companies are optimistic. Phil Spencer, head of Xbox, stated the following in an email sent to his employees (via The Verge):
“Microsoft and Activision Blizzard remain optimistic that we will achieve our acquisition, which is why we have jointly agreed to extend the merger agreement through October 18, 2023. While we can technically close the deal in the United States due to recent legal developments [su victoria frente a la FTC]this extension gives us additional time to resolve the remaining regulatory concerns in the UK.”
Phil Spencer.
Phil Spencer took advantage of the document to thank all the employees who have been involved, to a lesser or greater extent, in this complex regulatory process. Although the panorama began to get complicated after the obstacles interposed by the FTC and the CMA, Microsoft and Activision have been able to defend the acquisition. At the moment it’s only the UK body that stands in the waysince the FTC was left out of the battle since last week.