Biggest of All Time: $75 Billion Microsoft-Activision Blizzard Deal Deadline Extended for Merger Agreement

The record-setting deal between the Xbox maker and Call of Duty publisher Activision has received an extension for the deadline of the merger agreement. Previously reported to be worth $68.7 billion, the deal has now witnessed a slight revision. Currently, it’s reported to be worth $75 billion according to a latest article from a reputed media outlet.

Xbox chief Phil Spencer recently took to Twitter to share a much-needed update on the proposed acquisition. Per the latest announcement, the deadline for the merger agreement has been moved to October 2023.

Xbox-Activision deal sees Termination fee escalating from $3 billion to $4.5 billion

Mr. Spencer wrote in his tweet that his team is “optimistic about getting this (deal) done, and excited about bringing more games to more players everywhere.” Speaking about the revised date for the deadline, it’s been shifted to October 18, 2023. While there seems to be no problem in closing the deal in the US, Microsoft and Activision have now got enough time to resolve issues in the UK. They want to respect the CMA and not close over them. It will surely set a positive example in the public eye as well.

Following the tweet from Xbox boss, Microsoft President Brad Smith also shared important information. While writing about the regulatory concerns in the United Kingdom, he expressed optimism regarding the “prospects for getting this deal across the finish line”.

In a link shared in the above tweet, Mr. Smith revealed a few more details related to the extension of the agreement:

• Activision Blizzard is entitled to pay $0.99 per share to its shareholders.
• Both parties have agreed that the deal termination fee is not subject to any condition other than failure to close.
• 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.

Meanwhile, Activision’s CEO Bobby Kotick also sent an email to the employees after extending the deadline for the merger agreement. “I know many of you have questions about our merger with Microsoft. I am happy to share that based on our continued confidence in closing our deal, the Activision Blizzard and Microsoft boards have mutually agreed not to terminate the deal until after October 18”, read the email from Mr. Kotick.

READ MORE: Activision Acknowledges Call of Duty 2023 Leaks With an Official Reveal, Sledgehammer Games Confirmed as Lead Developer

He added that the merger is ideal “for players, workers, and our business”. And that it will end up creating opportunities to “compete against companies with large talent pools, strong IP, and complete control of their markets.”  The CEO also emphasized the fact that the deal has been cleared to close in more than 40 countries.

Microsoft-Activision Blizzard deal is now $75 billion and not $68.7 billion

In an update, media outlet Wall Street Journal recently published an article mentioning the revised value of the biggest merger of the gaming industry so far. Initially, Microsoft had announced to acquire Activision in January 2022. That time, the Xbox maker valued the deal at $69 billion (round-off figure) after adjusting for the videogame publisher’s net cash.

According to WSJ’s article, the revised figure is $75 billion. As of this writing, there’s been no official update from the two companies involved on what could be the reason for increasing the total amount.

Call of Duty 2023 development is in full swing, reveals Activision Blizzard

Along with Microsoft dropping a key update on the billion-dollar proposed merger, the CoD publisher Activision also shared a major earnings report for the second quarter. While highlighting the successful FPS franchise, it revealed that development on the upcoming Call of Duty 2023 is in full swing. To be precise, “the full annual premium release on PC and console is proceeding well”.

Rumors have indicated that the new game is expected to be introduced next month during a live event in Season 5 of Warzone DMZ. After that, it will likely end up receiving a beta phase, followed by the complete release in November 2023.

Coming back to the proposed acquisition, it might be closed before October. That’s when the issues regarding CMA get resolved before the updated deadline.

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