Microsoft is reportedly aiming to acquire gaming company Activision Blizzard. This deal between the two companies is to be done for about Rs 5,66,200 crore.
Activision Blizzard reported that the deadline for completing the deal with Microsoft has been extended to October 18.
Both Activision Blizzard and Microsoft are working on the approval of the deal from the Antitrust Authority of the United Kingdom.
Activision Blizzard is the publisher of the popular game Call of Duty (COD). He further said that both the companies have also agreed to increase the deal termination fee from $3 billion (about Rs 24,600 crore) to $3.5 billion (about Rs 28,700 crore) if the deal is completed by August 29. Will go With this, after September 15, this fee will increase to $ 4.5 billion (about Rs 36,900 crore).
Why the delay in the deal?
Both the US companies agreed to complete the deal by July 18. However, there has been a delay in completing the deal under pressure from US regulators and UK to restructure it.
The US Federal Trade Commission (FTC) had initially moved the court to block the deal. Its argument was that the deal would give Microsoft’s Xbox exclusive access to Activision games. This can have a bad effect on other gaming platforms such as Nintendo consoles and Sony Group’s PlayStation.
Microsoft’s argument
Microsoft says that this deal is beneficial for both gamers and gaming companies. Along with this, answering the concerns of the regulatory authority, it has also offered to license the game for its rivals for 10 years. Activision Blizzard had tied up for ‘Call of Duty’ on Sony’s gaming console PlayStation, the biggest competitor to Microsoft’s Xbox.
