2023-07-19 19:35:13
Microsoft Corporation logo
Microsoft has pushed back the deadline to acquire video game developer Activision Blizzard to October 18, an additional period that would allow the two companies to overcome final regulatory hurdles before closing the deal, particularly in the United Kingdom.
In return for extending the period allotted for the termination of the deal, Microsoft agreed to increase the amount of compensation to be paid in the event that the process was not completed.
If the process is not carried out by August 29, this fine will rise to $3.5 billion, following it was initially set at $3 billion, and then to $4.5 billion following September 15.
This delay gives Microsoft time to provide new guarantees to the British Competition Authority, which in turn postponed the deadline for examining the file to August 29, following it initially opposed the acquisition deal.
As the case was regarding to be decided in British courts, Microsoft and the Capital Market Authority agreed in early July to suspend legal proceedings to try to find common ground, which would require new proposals from Microsoft.
The Federal Trade Commission, which is concerned with protecting competition in the United States, opposed this $ 75 billion acquisition, but a federal court in California thwarted its bid in early July.
Although not all avenues of appeal have been exhausted, the FTC’s work now appears doomed, according to most observers.
“We are now able to complete (the deal) in the United States due to legal developments,” said Phil Spencer, head of “Xbox”, a subsidiary of Microsoft dedicated to gaming consoles, on Wednesday in an internal email seen by Agence France-Presse.
The European Commission approved the acquisition in May, in a deal that will make Microsoft the world’s third largest video game conglomerate.
Also Wednesday, Activision Blizzard released its quarterly results, which showed that net profit more than doubled with a growth of 105 percent, to $587 million, and revenue increased by 34 percent to $2.2 billion.
Headquartered in Santa Monica, California, the group’s growth was driven by the launch of the fourth edition of the highly successful Diablo game.
Another driver of growth was a 30 percent increase in in-game purchases made by users.
Despite these figures, Activision’s share price fell by 0.43 percent shortly following opening on Wall Street, while Microsoft’s shares rose by 0.19 percent, nearly their highest level this year.
1689800105
#Postponing #Microsofts #acquisition #Activision.. #date
