Washington CNN —Microsoft and Activision have mutually agreed to extend their merger deadline by three months in the face of ongoing negotiations with the UK government that could allow the $69 billion acquisition to close, the two companies announced on Wednesday. The announcement highlights the commitment by both companies to complete the deal after back-to-back court defeats for US regulators who had challenged the merger. The new contractual deadline for consummating the deal will be October 18, the companies said. If the deal fails to close by Sept. 15, the breakup fee could increase to $4.5 billion, the filing said. We’re confident in our next steps and that our deal will quickly close.”In a memo to employees, Activision CEO Bobby Kotick thanked staff for their patience.

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Persons: ” Brad Smith, We’re, Bobby Kotick, “, ” Kotick, Phil Spencer, ” Spencer Organizations: Washington CNN, Microsoft, Activision, Securities and Exchange Commission, Markets Authority, CMA, Activision Blizzard, ” Locations: U.S, United States