Microsoft and Activision Blizzard are reportedly negotiating a deal extension as the July 18 deadline passes. After July 18, both companies have a right to walk away from the deal. If the deal falls, Microsoft would have to pay $3 million to Activision Blizzard. However, in light of the Microsoft win against the FTC in federal court, it looks like both companies are ready to work towards an extension.
The FTC’s injunction against Microsoft was denied by the federal courts, effectively allowing for the deal to close in the United States. Additionally, the Supreme Court threw out a last-minute appeal against Microsoft by several concerned gamers. Multiple representatives from the House also wrote a letter to the FTC urging it to cease its legal actions against Microsoft.
Needless to say, the entire situation has been absolutely wild and it looks like it’s closer than ever to becoming a reality. The UK’s Competition Tribunal also granted the CMA and Microsoft the ability to negotiate the acquisition terms in order to avoid a legal battle.
Microsoft is apparently considering selling some of its rights to cloud gaming in the UK in order to gain approval for the merger. It is the last true obstacle left for Microsoft to close this deal.
In regards to extending the deal, a source from Reuters claimed that Microsoft has bee pushing for a contract extension. An extension would prevent other potential acquisition deals from other companies and would ensure that Activision does not suddenly walk out of the deal–a highly unlikely scenario.
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Zainah Yousef
Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.
