Microsoft and video game publisher Activision Blizzard have extended the deadline to acquire the second by the first to October 18, an additional period that should allow them to get around the final regulatory hurdles, particularly in the UK.
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In exchange for an extension of the period allotted for termination of the transaction, Microsoft agreed to increase the compensation payable in the event of non-completion.
If the process is not carried out by August 29, this penalty will rise to $3.5 billion, from $3 billion initially, then to $4.5 billion after September 15.
The delay gives Microsoft time to submit new safeguards to the British Competition Authority (CMA), which itself has pushed back the deadline for its examination of the file to August 29, after initially opposing this acquisition.
And while the case was about to be decided in British courts, Microsoft and the CMA agreed in early July to suspend legal proceedings to try to find common ground, which required new proposals from the Redmond Group (Washington).
“I think they realized the measures we were proposing were reasonable, and I think we’ll be able to go through with them,” Activision Blizzard CEO Bobby Kotick said on CNBC.
The US competition body, the Federal Trade Commission, opposed this $75 billion takeover, but it was denied by a California federal court in early July.
Even if all avenues of appeal are not exhausted, the FTC’s action now appears doomed, according to most observers.
“We can [d’ores et déjà] Phil Spencer, president of Xbox, Microsoft’s gaming console business, said in an internal email consulted by AFP:
They have taken note of court decisions. They know the facts and the law. It seems appropriate for the FTC to prioritize other filings, Bobby Kotick said.
The European Commission approved this acquisition in May, which would make Microsoft the third largest player in the world in video games.
Also on Wednesday, Activision Blizzard released its quarterly results, which showed net profit more than doubling (+105%), to $587 million, and revenue up 34% to $2.2 billion.
The group’s growth from Santa Monica (California) was fueled by the release of the fourth installment of the role-playing game Diablo, which was a success.
Another growth driver is the 30% jump in microtransactions, in-game purchases made by users.
Despite those numbers, Activision’s title lost 0.79% at around 3:30pm GMT on Wall Street, while Microsoft, near its highest level of the year, gained 0.11%.
