Microsoft and Activision Blizzard have extended their merger agreement until October

Microsoft and Activision Blizzard have agreed to extend their merger agreement until October 18, 2023.

The move to extend the agreement came after their initial self-imposed deadline to complete the $69 billion deal expired on Tuesday.

The European Commission approved the transaction in May, and last week the deal was cleared in the United States after Microsoft won a court battle with antirust regulator the Federal Trade Commission.

However, the company has yet to seal the approval of the UK’s Competition and Markets Authority (CMA), which remains the last major roadblock to the deal closing.

“Together with Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues,” said Microsoft president Brad Smith.

“We will honor all commitments agreed upon with the EC and other regulators and continue to work with the CMA on the issues raised in the UK. We are confident about our prospects for getting this deal across the finish line.”

Activision Blizzard‘s CCO and EVP corporate affairs Lulu Cheng Meservey commented: “Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18.”

And Xbox boss Phil Spencer said: “We’re optimistic about getting this done and excited about bringing more games to more players everywhere.”

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Last week the CMA extended the deadline for its final decision on the deal until August 29 so that it could consider a fresh proposal from Microsoft.

The Xbox maker is reportedly considering selling some of its UK cloud gaming rights in a bid to gain approval for the merger.

The extended merger agreement includes an increase in the break-up fee payable to Activision Blizzard from $3 billion to $3.5 billion if the transaction is terminated after August 29, and to $4.5 billion if the transaction is terminated after September 15.

Activision Blizzard said the agreement also includes amendments to its commercial Xbox arrangements with Microsoft, valued at up to $250 million for each of fiscal years 2023 and 2024.