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Microsoft and Activision Blizzard’s $69 billion deal delayed in Britain
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Microsoft and Activision Blizzard’s $69 billion supermerger has been delayed as the two companies seek final approval from British antitrust regulators.
With a new extension set for October 18, the companies believe they can seal the deal but need more time to address regulatory concerns.
In early 2022, Microsoft announced the acquisition of Activision, a prominent video game publisher.
Read More: Microsoft secures Activision Blizzard deal as FTC loses appeals court battle
Both companies established a closing date on July 18 this year.
However, a revised agreement was put in place, stipulating an increasing breakup fee that Microsoft would owe to Activision if the acquisition did not materialize.
The fee would start at $3 billion until August 29, and rise to $4.5 billion if not closed by September 15.
Brad Smith, Microsoft’s president, said: “We are confident about our prospects for getting this deal across the finish line.”
Read More: FTC appeals Microsoft-Activision takeover decision
The antitrust scrutiny centers around potential harm to consumers if Microsoft, which has Xbox video game console and a nascent game streaming platform, also owns Activision.
The European Union approved the deal in May, with Microsoft agreeing to offer Activision games on other streaming platforms.
However, it faced stiffer opposition in the US and Britain.
The Federal Trade Commission sued to oppose the translation in December, saying Microsoft might keep Activision’s Call of Duty off Sony's PlayStation.
Despite the FTC's efforts, a federal judge ruled against the agency, and an appeals court rejected the request to halt the deal.
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In the UK, the Competition and Markets Authority moved to block the deal in April, citing potential harm to consumers who stream games online.
Microsoft and Activision appealed the finding, leading to a two-month pause in the appeal process to explore resolution possibilities.
In a recent development, Microsoft reached a 10-year deal with Sony to keep Call of Duty on PlayStation, resolving a major concern raised by the FTC in court.
However, the FTC has yet to withdraw its objections to Microsoft's acquisition plans.
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