Microsoft and Activision Blizzard extends the time to complete the $69 billion deal

Microsoft and Activision

On July 18, 2023, Microsoft and Activision Blizzard announced that they had agreed to extend the deadline for the closing of their acquisition deal from July 18 to October 18, 2023. The extension comes as the deal is still under review by regulators in the United States and the United Kingdom.

The acquisition of Activision Blizzard by Microsoft would be the largest ever acquisition in the gaming industry. It would give Microsoft control of some of the most popular video game franchises in the world, including Call of Duty, World of Warcraft, and Candy Crush.

The deal has been met with some opposition from regulators. In the United States, the Federal Trade Commission (FTC) has opened an investigation into the deal, raising concerns that it could reduce competition in the gaming industry. In the United Kingdom, the Competition and Markets Authority (CMA) has also opened an investigation into the deal.

The extension of the deadline is a sign that Microsoft and Activision Blizzard are confident that they will be able to overcome the regulatory challenges and close the deal. However, it remains to be seen whether they will be successful.

Background of the deal

Microsoft first announced its intention to acquire Activision Blizzard in January 2023. The deal was valued at $68.7 billion, making it the largest acquisition in Microsoft’s history.

Activision Blizzard is a major video game publisher that owns a portfolio of popular franchises, including Call of Duty, World of Warcraft, and Candy Crush. The company has been struggling in recent years, however, due to a number of scandals and controversies.

Microsoft’s acquisition of Activision Blizzard is seen as a way for the company to expand its gaming business and become a more dominant player in the industry. Microsoft believes that the acquisition will give it the scale and resources to compete with rivals like Sony and Tencent.

Regulatory challenges

The acquisition of Activision Blizzard by Microsoft has faced a number of regulatory challenges. In the United States, the FTC has opened an investigation into the deal, raising concerns that it could reduce competition in the gaming industry. The FTC is particularly concerned about the impact of the deal on the market for first-person shooter games, which is dominated by Call of Duty.

In the United Kingdom, the CMA has also opened an investigation into the deal. The CMA is concerned that the deal could lead to higher prices for video games and less innovation in the industry.

The extension of the deadline

The extension of the deadline for the closing of the deal is a sign that Microsoft and Activision Blizzard are confident that they will be able to overcome the regulatory challenges. The extension gives the companies additional time to work with regulators and address their concerns.

It remains to be seen whether Microsoft and Activision Blizzard will be successful in closing the deal. However, the extension of the deadline is a positive sign for the deal and suggests that it is still on track to be completed.

Impact of the deal

The acquisition of Activision Blizzard by Microsoft would have a significant impact on the gaming industry. The deal would create a gaming giant with a portfolio of popular franchises. This would give Microsoft a strong competitive position in the industry and could lead to higher prices for video games.

The deal could also lead to less innovation in the gaming industry. With fewer competitors, Microsoft would have less incentive to innovate and could focus on protecting its existing franchises.

Overall, the acquisition of Activision Blizzard by Microsoft is a significant development in the gaming industry. The deal would create a gaming giant with a strong competitive position. However, it is also a deal that has faced regulatory challenges and could have a negative impact on innovation in the industry.

Conclusion

The extension of the deadline for the closing of the Microsoft-Activision Blizzard deal is a positive sign for the deal. However, it remains to be seen whether the companies will be able to overcome the regulatory challenges and close the deal. The deal has the potential to have a significant impact on the gaming industry, but it is also a deal that has faced some challenges.

ALSO READ: Microsoft and Activision Blizzard extend merger agreement to October – The Verge

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