Activision Blizzard and Microsoft are now in negotiations to prolong their acquisition agreement, according to a source familiar with the situation who spoke to Reuters. In order to overcome any outstanding regulatory obstacles before concluding the $69 billion deal, they intend to extend the current agreement, which is scheduled to end on July 18.
Microsoft talks with Activision: Although the contract’s expiration does not necessarily mean that the arrangement will end, it does give both parties the chance to back out of the deal. In order to avoid any potential change of heart or the appearance of other potential buyers, Microsoft, the company that created the Xbox game system, is vigorously pushing the contract extension.
The agreement might provide financial benefits to Activision, but they are still discussing the specifics. Working together to find a solution that benefits both businesses, they are making sure the transaction goes smoothly and complies with all legal and regulatory standards.
The person added that if the firms do not achieve a deal by the end of July 18, they will have additional talks to extend the deadline. Microsoft and Activision have not yet responded to Reuters’ requests for clarification with a statement. LiveMint was unable to independently confirm the claim.
This prospective postponement would give the firms more time to look for a regulatory solution, particularly in Britain, the only important jurisdiction that currently stands in the way of concluding this historic gaming industry transaction.
The Competition and Markets Authority (CMA) and Microsoft are currently exploring alternative solutions in an effort to allay its antitrust concerns.
The nation’s antitrust watchdog has warned that Microsoft’s promise to let alternative cloud gaming platforms access to Activision’s multibillion dollar “Call of Duty” series will insufficiently safeguard the market’s competition. To allow for additional discussions with the companies, the CMA has agreed to prolong its investigation until August 29.