Microsoft in talks to renew Activision purchase agreement: source

NEW YORK, July 18 (Reuters) – Microsoft Corp is seeking to extend its acquisition of Call of Duty video game developer Activision Blizzard, which expires on Tuesday, to allow the parties to overcome remaining obstacles to a $69 billion deal, a source familiar with the matter said on Monday.

The expiration of a suspended contract does not automatically terminate the contract, as it simply gives one of the companies the right to withdraw from the contract.

According to a source who asked to remain anonymous as the matter is confidential, the companies will continue to negotiate a contract extension if no agreement is reached by the end of the day on Tuesday.

Microsoft and Activision did not immediately respond to a request for comment.

The extension will give firms more time to seek a regulatory solution in the UK, where the regulator first blocked the deal and then pushed back the decision until August 29. It is the only major jurisdiction preventing the closure of the largest takeover in the gambling sector.

On Monday, Activision shares closed at $93.2, just below the $95 deal price per share, suggesting that most investors now consider a successful deal completion highly likely.

The original message in English is available at the code: (Anirban Sen in New York)