Microsoft-Activision Deal Delayed Past Tuesday Deadline: Report

Microsoft and Activision Blizzard are approaching the final stages of their historic $69 billion merger. However, the possibility of finalizing the deal by the forthcoming Tuesday deadline seems slim, according to insiders acquainted with the situation.

Despite the impending deadline, the tech and gaming giants have no intentions of abandoning this merger. The companies are persistently pushing to secure the last batch of required regulatory approvals, said unnamed sources speaking to Bloomberg.

Intriguingly, an April edict from the UK regulators is obstructing the finalization of the deal, despite it already receiving the green light from government authorities in 39 nations. The UK’s Competition and Markets Authority (CMA) noted on Monday that it had engaged in “constructive” dialogue with the companies about a potential resolution. However, the UK regulatory body continues to hold its veto, while negotiations are still underway.

Breaching the UK’s mandate could inflict hefty penalties on the companies, potentially amounting to 5% of their combined global revenue. However, the British enforcers could consider amending their order to permit Microsoft and Activision to finalize the deal beyond UK borders while keeping the companies as separate entities within the UK.

Resolving the UK negotiations could potentially extend over several days or weeks, leading the CMA to officially push back its investigation target date to August 29.

According to the merger agreement, July 18 is the designated cut-off date, after which both companies have the option to terminate the deal. If the merger is called off, Microsoft is obligated to pay Activision a considerable sum of $3 billion, as per the contract stipulations.