Microsoft and Activision are in discussions to prolong their agreement.

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.

A source with knowledge of the situation said on Monday that 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 last regulatory obstacles 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 purchaser or changes its mind, the source claimed.