Activision Blizzard and Microsoft have moved the acquisition deadline into October

Activision Blizzard and Microsoft They agreed to extend the acquisition deadline until the fall to work on final regulatory matters.

The original deadline to close the deal was set for yesterday, July 18, but was changed after meetings between the companies.

Activision Blizzard stated in its Q2 2023 financial report that on July 18, the two companies signed an agreement to move the acquisition deadline to October 18.

The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3 billion to $3.5 billion if the transaction is completed after August 29 and to $4.5 billion if the transaction is completed after September 15.

Both parties have agreed that the deal termination fee is not subject to any condition other than failure to close.

The agreement also includes amendments to Activision Blizzard’s Xbox business agreements with Microsoft, valued at up to $250 million for fiscal years 2023 and 2024.

According to Microsoft Vice President and President Brad Smith, extension will allow Microsoft extra time work on final regulatory issues and continue to work with the CMA on issues raised in the UK.

Smith said the company is “confident” in its prospects of “getting this deal over the finish line.”