Microsoft & Activision Blizzard Merger Agreement Deadline Extended to October 18, 2023

Microsoft and Activision Blizzard have announced that the merger agreement deadline for the former’s planned acquisition of the latter has been extended to October 18, 2023.

The Vice Chair and President of Microsoft, Brad Smith, stated the following via a tweet and linked Word document:

“Together with Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues.

We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the issues raised in the UK. We are confident about our prospects for getting this deal across the finish line.”

Microsoft and Activision Blizzard have jointly agreed to extend the merger agreement deadline from July 18, 2023, to October 18, 2023, to allow for additional time to resolve remaining regulatory concerns.

Additional details related to the extension of the agreement:

• Activision Blizzard is entitled to pay $0.99 per share to its shareholders.
• Both parties have agreed that the deal termination fee is not subject to any condition other than failure to close.
• If the deal does not close by August 29, 2023, the termination fee payable by Microsoft if the agreement is terminated will increase from $3 billion to $3.5 billion. If the deal does not close by September 15, 2023, it will increase from $3.5 billion to $4.5 billion. Any termination fee will only be paid if the deal fails to close.

The Head of Xbox, Phil Spencer, stated the following regarding this development:

“Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We’re optimistic about getting this done, and excited about bringing more games to more players everywhere.”