After the July 18 deadline, both companies have the right to walk away from the $69 billion deal, although Microsoft will have to pay Activision a $3 billion termination fee if it falls through.
A Reuters source claimed Microsoft has been pushing for a contract extension to ward off potential interest in Activision from other suitors, and to ensure the Call of Duty maker doesn’t have a change of heart before the deal can be completed.
Amending the contract opens the possibility of changes to the financial terms of the deal, which Activision could seek to exploit.
Microsoft was recently cleared to acquire Activision in the US after winning a court battle with antirust regulator the Federal Trade Commission.
However, the company has yet to seal the approval of the UK’s Competition and Markets Authority (CMA), which remains the last major roadblock to the deal closing.
Last week the CMA extended the deadline for its final decision on the deal from today until August 29 so that it could consider a fresh proposal from Microsoft.
The Xbox maker is reportedly considering selling some of its UK cloud gaming rights in a bid to gain approval for the merger.
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Source: https://www.videogameschronicle.com/news/microsoft-and-activision-reportedly-negotiating-deal-extension-as-deadline-nears/
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