Microsoft acquiring gaming company Activision Blizzard
Microsoft is going to acquire the gaming company Activision Blizzard. The contract between the two companies will be worth 3 billion 500 million dollars. Activision Blizzard said the deadline to complete the deal has been extended to October 18. Both companies are working on agreement approval from the United Kingdom’s Antitrust Authority.
Activision Blizzard is the company behind the popular game Call of Duty. It has been reported that if the agreement is completed by August 29, both companies will increase the deal termination fee from $3 billion to $3.5 billion. Along with this, after September 15, this fee will increase to 4.5 billion dollars.
Both US companies have agreed to complete the deal by July 18. However, the completion of the agreement was delayed due to the pressure of the American regulator and the UK for restructuring.
The US Federal Trade Commission (FTC) initially went to court to block the deal. The Commission argued that the deal would give Microsoft’s Xbox exclusive access to Activision games. This can have a negative impact on other gaming platforms such as Nintendo consoles and Sony Group’s PlayStation.
Microsoft has said that this agreement is beneficial for both gamers and gaming companies. Along with this, in response to the interest of the regulatory body, it has also proposed to give the game license to its rival for 10 years.
Activision Blizzard signed a deal for ‘Call of Duty’ on Sony’s gaming console PlayStation, the biggest competitor of Microsoft’s Xbox.
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