Microsoft is reportedly seeking an extension to its current merger contract with Activision Blizzard as the deal hits its deadline today, July 18. After a tense battle with the U.S. Federal Trade Commission (FTC), many were expecting the deal to close today, but Microsoft has now entered negotiations with U.K.’s Competition Markets Authority (CMA).
Microsoft isn’t skipping UK to close Activision deal after all
One of the reasons FTC sought a preliminary injunction at the last minute was a report that Microsoft was willing to close the deal despite the CMA blocking it. Following FTC’s defeat, both Microsoft and CMA announced that they had entered negotiations to get the merger over the finish line with remedies that would be acceptable to the U.K. As a result, the tribunal where Microsoft had appealed the CMA’s decision paused the proceedings and granted both parties extra time to negotiate.
In light of those negotiations, it’s highly unlikely that Microsoft will close the merger today. However, according to Reuters, this poses the risk of Activision being swayed by another buyer since it has no legal obligation to merge with Microsoft once the deadline elapses. A Reuters source claims that Microsoft is now seeking an extension of the existing contract to ensure that Activision doesn’t have “a change of heart.”
