Microsoft Corp. is in discussions to extend the purchase agreement it has with video game developer Activision Blizzard, which is due to expire on Tuesday, so the parties can clear the final regulatory hurdles in their $69 billion merger.
The contract’s expiration would not necessarily result in the deal’s demise; rather, it would give each business the option to end the relationship.
However, the Xbox game console’s manufacturer, Microsoft, has been requesting the contract extension to make sure that Activision is not courted by another prospective acquirer or changes its mind, the reports claimed.
It was not immediately possible to find out the details of the extension that was being negotiated or whether it would have more favorable financial terms for Activision.
If a deal is not reached by the end of Tuesday, the firms will discuss the extension further.
Requests for comment from Microsoft and Activision were not immediately fulfilled.
The businesses would benefit from an extension if it gave them more time to find a regulatory solution in Britain, the only significant country preventing them from completing what would be the greatest acquisition in the gambling industry.
The Competition and Markets Authority (CMA) and Microsoft are currently exploring alternative solutions to allay their antitrust concerns.
The nation’s antitrust regulator has warned that Microsoft’s promise to let alternative cloud gaming platforms access Activision’s multibillion-dollar “Call of Duty” series will insufficiently safeguard the market’s competition.
To allow for additional discussions with the companies, the CMA has agreed to prolong its investigation until August 29.
