Microsoft’s Acquisition of Activision Blizzard Again Delayed by Regulators

The British Competition and Markets Authority announced Friday morning that it would extend by six weeks its consideration period for the near-$69 billion merger between Microsoft and Activision Blizzard, delaying its decision until August 29. 

After the authority made public a proposed order related to the acquisition in May, it gave interested parties an extension until June 19. However, the regulator said it requires more time to fully consider Microsoft’s submission on the order, extending its consideration period to August 29.

The transaction continues to get pushback from American regulators. On Wednesday, the U.S. Federal Trade Commission filed an appeal against a federal district court decision allowing the deal. The FTC will need the Ninth Circuit Court of Appeals to extend the temporary block on the deal, which expires Friday.

Activision Chief Communications Officer Lulu Cheng Meservey said the company is confident the U.S. will "remain among the 39 countries where the merger can close." Microsoft President Brad Smith said the company is “disappointed” that the FTC was appealing the decision. 

“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Smith said. “We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”

In April, the British authority announced its intention to block the deal, expressing concern that the proposed deal would reduce competition in the supply of cloud gaming services in the U.K and make the Call of Duty franchise exclusive to the Xbox, hurting competitors like Sony and Nintendo. 

Microsoft must close its acquisition of Activision by July 18 or it will be forced to pay Activision a $3 billion termination fee, according to the terms of the deal. 

On Tuesday, the British authority announced it was prepared to negotiate new terms with Microsoft but appeared to walk that back the following day. On Wednesday, however, a representative of the authority said that a new investigation might be triggered even if Microsoft renegotiates to meet the regulator's concerns.

“Whilst merging parties don’t have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation,” a media officer for the Competition and Markets Authority told The Verge. “Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis.”