July 19 (UPI) — Microsoft and Activision Blizzard have agreed to extend the deadline for their $69 billion merger until October.
Activision announced the deal and decided to grant a three-month extension, from the original expiration date of Tuesday, to October 18th, to allow regulators more time to evaluate the merger.
“We remain optimistic about completing this merger and are thrilled about the prospect of expanding our game offerings to players worldwide,” stated Phill Spencer, CEO of Microsoft Gaming, via Twitter.
As part of the extended deadline agreement, Activision has made amendments to the termination fee structure. If the transaction is terminated after August 29th, Microsoft will be required to pay $3.5 billion, and if terminated after September 15th, the fee increases to $4.5 billion.
“The agreement also includes revisions to Activision Blizzard’s commercial Xbox arrangements with Microsoft, with a value of up to $250 million for each fiscal year of 2023 and 2024,” added Activision.
The deadline extension was prompted by the decision of Britain’s anti-trust regulator to postpone a ruling on whether to lift the interim ban on Microsoft’s acquisition of Activision.
As the proposed merger undergoes scrutiny by U.S. regulators, Activision announced on Monday that it has entered into an agreement with Sony to continue offering its popular Call of Duty franchise on PlayStation consoles.
Additionally, Activision reported its second-quarter financial results, revealing net bookings of one billion dollars, earnings per share up by over 80%, and operating income up by more than 70%. The company attributed its record quarter to strong sales of the Call of Duty franchise.
“While we acknowledge concerns regarding the economy and competition within the industry, our focus remains on the long-term opportunities ahead and the successful completion of our merger with Microsoft,” commented Activision CEO Bobby Kotick in a statement.
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