Microsoft had until yesterday, July 18, to complete the purchase of Activision Blizzard. However, this was not possible due to a block by the UK's Competition and Markets Authority (CMA). After receiving the relevant authorization, Microsoft and the regulator paused their legal battle to negotiate the acquisition.

As a result, the technology giant and Activision Blizzard negotiated a new purchase agreement that was unveiled this morning. This implies that the closing of the acquisition will be delayed and that certain covenants were modified. In addition, a possible alternative was presented to comply with the CMA's requirements in order to complete the purchase as soon as possible.

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Microsoft and Activision have a new purchase agreement due to deadline expiration

Microsoft and Activision Blizzard negotiate new purchase agreement

The companies decided to extend their purchase agreement, so they now have until October 18 to complete their deal and merge. According to Brad Smith, president of Microsoft, this 3-month delay will be fundamental to address the concerns of the CMA and the rest of the regulators that have not yet given their verdict on the case.

On the other hand, the companies set a new termination fee in case Microsoft or Activision decide for some reason to abandon the process. The fee is now $3.5 MDD if the acquisition is not finalized by August 29. Subsequently, it will rise to $4.5 MDD if September 15 arrives and there is still nothing concrete.

Another important detail is that Activision is now open to take legal alternatives to complete the deal in the UK. Phil Spencer, head of Xbox, pointed out that they could close the deal in the U.S.; however, they will seek to resolve the matter with the CMA at all costs.

The executive was positive about the matter and believes it is a matter of time before everything comes to fruition. "We're optimistic about getting this done, and excited about bringing more games to more players everywhere.," Spencer said in a brief message he posted on his social networks.

Microsoft and Activision Blizzard's goal is to put an end to this process as soon as possible. They are currently in negotiations with the CMA, the regulator that blocked the acquisition in April due to its implications on the cloud gaming market.