Activision Blizzard, Inc revealed the official postponement of the deadline for closing its merger with Microsoft Corp in a bid to buy more time for the $69 billion agreement to gain approval from the UK's Competition and Markets Authority (CMA).
Activision Blizzard executive vice president of corporate affairs Lulu Cheng Meservey announced on Twitter a three-month extension to the deal after it failed to go through under its initial deadline of July 18.
Microsoft must now complete its acquisition of Activision Blizzard by October 18 or pay several billion dollars in a reverse termination fee.
In another tweet, Microsoft president Brad Smith wrote that the company faces an even bigger fine if the merger agreement continues to face delays.
Microsoft will now have to pay Activision Blizzard $3.5 billion if the deal does not close before August 29, and $4.5 billion if it fails to close before September 15, up from the $3 billion set originally.
The merger was first announced by the two companies in January 2022.
Earlier in July, the CMA warned that Microsoft could be faced with a whole new merger investigation when it submits its new proposal, but the company suggested the deal will finally go through by October 18.
In other news, The Verge reported that Activision Blizzard is laying off about 50 workers in its esports department while also preparing for potentially huge changes coming to the Overwatch League.
Shares of Microsoft were little changed at $359.72, while Activision Blizzard shares slipped 0.8% to $92 in late-morning trading on Wednesday.
Contact Sean at sean@proactiveinvestors.com