Microsoft And Activision Reportedly Negotiating Deal Extension As Today's Deadline Looms

Microsoft is reportedly negotiating an extension of its acquisition contract with Activision Blizzard, as of July 17. The contract is set to expire Tuesday, July 18.

According to a report from Reuters, the two companies will continue to negotiate the extension, even if a resolution is not reached by the end of day July 18. To be clear, the expiration of the contract does not necessarily mean that acquisition will not occur; it simply means either company has the legal power to walk away from the deal. According to the report, Microsoft wants to make sure that Activision does not enter into a contract with another acquirer or back away from the acquisition.

After the Federal Trade Commission lost its case against Microsoft, the key obstacle against the tech giant's acquisition of Activision is the UK's Competition And Markets Authority (CMA). The CMA previously decided against the acquisition, citing concerns about cloud gaming. Microsoft opened an appeal case shortly afterwards. Negotiations were reopened after the FTC's case in the US was closed. Both the CMA and Microsoft requested a pause in Microsoft's appeal case to allow more time to negotiate a potential divestment. Extending the contract with Activision will help Microsoft have more time to negotiate with the CMA.

Following the court's rejection of the FTC's appeal, Sony cut a deal with Microsoft, allowing Call of Duty to appear on PlayStation for at least the next 10 years. Activision is also ramping up the press cycle to announce this year's Call of Duty, teasing potential details.