Countdown on for Microsoft and Activision as they try to extend deal deadline
Time is ticking for Microsoft and Activision Blizzard, which are reportedly in discussions to extend the deadline for their proposed multi-billion pound tie up.
Originally set to be closed by today, the deal may now require more time as the two tech companies work to address regulatory concerns, according to sources close to Reuters.
If an agreement is not reached by the deadline, Microsoft may need to pay a $3bn (£2.3bn) fee to Call of Duty-maker Activision and renegotiate the terms of the deal.
Microsoft and Activision did not immediately respond to Morning Wire‘s request for confirmation of the reports.
While Microsoft has received approval for the acquisition in the EU and the US, it is still working through negotiations with the UK’s competition watchdog the Competition and Markets Authority (CMA).
The CMA has raised objections to the deal and is seeking modifications to ensure that competition in the cloud gaming market remains unharmed.
It agreed last week to give Microsoft and Activision more time to restructure their deal before the regulator reaches its final decision.
It comes after Sony signed a decade long deal with Microsoft to keep Call of Duty on their Playstation consoles on Sunday.
Microsoft president Brad Smith tweeted on the day that even after the potential deal closes, Microsoft “will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”
Previously, Sony has voiced concerns over rival Microsoft’s acquisition of the gaming giant, saying it may damage competition if the tech giant made exclusive games for its Xbox.