Activision Blizzard and Microsoft extended their deadline for the largest video-game deal ever, as they face regulatory challenges in the UK and the US. The USD 69 billion deal would unite the Xbox maker with the Call of Duty publisher, creating a dominant force in the market. Microsoft also agreed to pay more to Activision if the deal falls through after certain dates (from USD 3 billion to USD 3.5 billion after August 29 and USD 4.5 billion after September 15). The companies are confident about completing the deal and expanding their gaming offerings.
The UK Competition and Markets Authority (CMA) blocked the deal in April, saying it could harm the emerging market for cloud gaming. The CMA agreed last week to consider a restructuring of the deal, but it would need to conduct a new investigation into the changes. It's unclear how long that would take. The US Federal Trade Commission also tried to stop the merger, but a California judge denied its request to halt the deal last week.
The deal was set to expire on Tuesday night in California, but the companies agreed to push it back to October 18, according to a filing on Wednesday. In an updated agreement, the companies also allowed Activision Blizzard to issue a one-time dividend of up to 99 cents per share before the deal closes. Activision suspended its regular dividend earlier this year.