2023-07-18 22:55:46
Microsoft and video game publisher Activision Blizzard have reportedly decided not to complete their merger while the deadline was set for July 18. Pending the decision of the British competition authority, the two companies intend to allow themselves time.
According Archyde.com, Microsoft however, sought to extend the contract to avoid any potential interest for Activision from other purchasers, and to ensure that the manufacturer of Call of Duty does not change its mind until the deal is finalized.
The modification of the contract opens the possibility of modifying the financial terms of the agreement, Activision might seek to exploit.
Negotiations dragged on due to legal battles. On Friday, the Federal Trade Commission’s request to halt the merger was denied on appeal. A first trial had given him too much last July 11.
Microsoft struck a deal Sunday with Sony to keep the game Call of Duty d’Activision on the consoles PlayStation for 10 years after the acquisition ofActivision par Microsoft. District Court Judge Jacqueline Scott Corley denied the FTC’s motion to suspend that agreement, citing the undertaking of Microsoft to maintain Call of Dutthere on PlayStation and its agreement with Nintendo for the game on Nintendo Switch. The judge found that this agreement would not reduce competition, but would give consumers better access to Call of Duty and other content fromActivision.
Microsoft a obtained the authorization to acquire Activision in the United States, but on Monday a group of gamers asked the Supreme Court to block the deal. This request was rejected on Tuesday.
However, Microsoft has yet to secure approval from the UK’s Competition and Markets Authority (CMA), which is the final major hurdle to completing the deal.
Last week, the CMA extended the deadline for its final decision on the deal until August 29 so it could consider a new proposal from Microsoft.
The Xbox maker is apparently planning to sell some of its UK cloud gaming rights in order to get approval for the merger.
1689722108
#Negotiations #prolonged