Microsoft and Activision Blizzard agree to extend merger agreement to October

[John Elden Ring]

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There’s a small delay to Microsoft’s proposed Activision Blizzard acquisition to resolve the UK regulatory situation.​

Microsoft and Activision Blizzard have agreed to extend their merger agreement pending the outcome of negotiations with UK regulators. Both parties will now have until October 18th to finalize the transaction, after missing yesterday’s original deal deadline.

The delay is related to Microsoft’s ongoing negotiations with the Competition and Markets Authority (CMA). The UK regulator originally blocked the deal over cloud gaming concerns earlier this year. While Microsoft has appealed that decision, the company is also preparing to reportedly offer a new proposal to sell off its rights to cloud gaming in the UK to try and get the deal over the line.

The merger extension comes after a case management conference in the UK on Monday, where the Competition Appeal Tribunal (CAT) agreed to allow Microsoft and CMA to negotiate a way to close the deal and pause the appeal process. The CMA made it clear earlier this week that Microsoft had not yet submitted its final proposal, and the regulator now has until Thursday at midday to file all the relevant evidence to the CAT for the tribun

 

[Nhomnhom]

There it is. Congratulations to the CMA you were so close before you completely buckled.

 

[Box]

There is is. Congratulations to the CMA you were so close before you completely buckled.

Hopefully Microcock mismanages Activision like they have with all other studios and run them into the ground.

 

[Gediminas]

Hopefully Microcock mismanages Activision like they have with all other studios and run them into the ground.

just matter of time.

 

[Bryank75]

Hopefully Microcock mismanages Activision like they have with all other studios and run them into the ground.

Pretty sure that and a few other things will happen to render ABK very ineffective.

Staff will leave, making ABK a husk of what it was, COD is already not in the best place, they used their 'Modern Warfare card' and it's wearing out fast...nothing else they do will be as successful.

Then Microsofts poor management on top of everything and the devaluation of the games via gamepass will just tank it completely.

It's not gonna be pretty.

But for the longterm health of the industry, companies like Microsoft need to learn that you can't brute force a creative industry.

 

[Summer Nightmares]

 

[Tradermark_kalil]

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There’s a small delay to Microsoft’s proposed Activision Blizzard acquisition to resolve the UK regulatory situation.​

The Saga has been extended…

 

[thicc_girls_are_teh_best]

So it's as good as going through, then?

I mean with the extension, and knowing they can close in almost all other markets, and the CMA will assuredly approve by then, it's pretty much a lock. I just wonder if the FTC proceed with the August trail and if so, what other documents exposing Microsoft's BS they were holding out on for said trail.

It would be a nice consolation prize to get out into the public sphere even in light of MS buying ABK.

 

[Zzero]

Bobby is goi g to get an extra 1.5 billion milkies if it fails in October. It won't but if it did it could buy Bama the finest stadium in the whole world.

Edit : You know, in case you didn't hate him enough.

 

[MScarpa]

Just waiting for all the ABK games to show up on Gamepass

 

[historia]

I'm done with this saga, hope it could be finally over either way so I don't have to see this shit ever again

 

[ethomaz]

That was what I understood from the other day court.
Now CMA will back to the previous phase where MS needs to give them better remedies and concessions.

People tried to say CMA was trying to go fast to get the deal approved in the next day but that was impossible.
You have a procedure schedule to follow that can't be made in a few days.

Now MS had no choice delay the merge.
Maybe have to pay more to AB.

 

[Yurinka]

So MS paid another compensation to ABK this case of $3 Billion for another missed milestone, making Kotick richer.

 

[Zzero]

So MS paid another compensation to ABK this case of $3 Billion for another missed milestone, making Kotick richer.

I don't think so, I think that was put off, but raised, with Activision waiving the fee from the old agreement in return for having an even bigger one in this agreement.

 

[Yurinka]

I don't think so, I think that was put off, but raised, with Activision waiving the fee from the old agreement in return for having an even bigger one in this agreement.

Their legally binding deal said that if as July 18th the acquisition wasn't completed, Microsoft had to pay another compensation to ABK, this time of $3B and that the deal was over. Prior to this, there were other previous milestones with their related penalty compensations that MS has already payed because they weren't able to close the acquisition before these other milestones. So yes, make sure MS will pay them these extra $3B too.

After having missed the last milestone, they signed another deal to extend the deal until October to see if they can do something with the CMA and FTC to get the acquisition approved. Which I assume will also have another compensation clause where MS will have to pay a handful billions more if don't complete it.

 

[Zzero]

Their legally binding deal said that if as July 18th the acquisition wasn't completed, Microsoft had to pay another compensation to ABK, this time of $3B and that the deal was over. So yes, make sure MS will pay them these extra $3B.

After it, they signed another deal to extend that one until October to see if they can do something with the CMA and FTC to get the acquisition approved. Which I assume will also have another compensation clause where MS will have to pay a handful billions more if don't complete it.

The terms of the new deal have two deadlines, the first has an increased fee at an early date and then theres a second date with an even higher price attached to it.

 

[Yurinka]

The terms of the new deal have two deadlines, the first has an increased fee at an early date and then theres a second date with an even higher price attached to it.

No, the price of the acquisition is the same, $68.7B. In addition to pay this, there was a clause stating that there were multiple deadlines where if MS didn't complete the acquisition before that day, had to pay a certain compensation to the ABK shareholders.

The last one, which also ended the deal, was set for July 18th and the compensation was $3B.

 

[Zzero]

No, the price of the acquisition is the same, $68.7B. In addition to pay this, there was a clause stating that there were multiple deadlines where if MS didn't complete the acquisition before that day, had to pay a certain compensation to the ABK shareholders.

The last one, which also ended the deal, was set for July 18th and the compensation was $3B.

The new deal has two payment deadlines according to GI.biz.

 

[Crow]

Their legally binding deal said that if as July 18th the acquisition wasn't completed, Microsoft had to pay another compensation to ABK, this time of $3B and that the deal was over. Prior to this, there were other previous milestones with their related penalty compensations that MS has already payed because they weren't able to close the acquisition before these other milestones. So yes, make sure MS will pay them these extra $3B too.

After having missed the last milestone, they signed another deal to extend the deal until October to see if they can do something with the CMA and FTC to get the acquisition approved. Which I assume will also have another compensation clause where MS will have to pay a handful billions more if don't complete

They only pay if ABK walks. They didnt walk.

 

[Yurinka]

The new deal has two payment deadlines according to GI.biz.

Just saw the extension deal. Now the final deadline is October 18 and:

• 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.