Microsoft’s deal with Activision Blizzard extended: Postponed until October 18 this year
In January of the previous year, Microsoft, for a grand sum of $95 per share, secured the gaming titan, Activision Blizzard, in a staggering transaction amounting to $68.7 billion, marking the largest expenditure ever made in the annals of the company’s acquisitions. Despite the significant challenges, this entire acquisition process was anything but seamless. The agreement, originally due to expire on the 18th of July, 2023, was extended following negotiations between Microsoft and Activision Blizzard, in a bid to secure ample time to surmount regulatory hurdles.
Phil Spencer, the individual helming Xbox operations, has issued a statement in this regard, articulating that the deadline for the business transaction between Microsoft and Activision Blizzard has been extended until the 18th of October of the current year. He exudes optimism regarding the fruition of this endeavor and envisions a future enriched with an array of games for gamers across the globe.
Brad Smith, the incumbent President, and Chief Legal Officer of Microsoft, unveiled the contents of the novel agreement:
Microsoft and Activision Blizzard, in unison, have concurred on extending the final deadline for the merger agreement from the 18th of July, 2023, to the 18th of October, 2023, thereby allotting additional time to address the residual regulatory issues. Pertaining to the extension agreement, several finer details were also unveiled:
- Activision Blizzard possesses the right to offer a payment of $0.99 per share to its shareholders.
- The duo has concurred that except for the failure to finalize the transaction, the termination fee of the transaction is not bound by any conditions.
- If the transaction does not reach completion by the 29th of August, 2023, Microsoft would face an escalation in the termination fee payable at the end of the agreement, from $3 billion to $3.5 billion. If the transaction does not reach its conclusion by the 15th of September, 2023, it would see a steep rise from $3.5 billion to $4.5 billion. Any termination fee would be applicable only in the event that the transaction fails to finalize.
Brad Smith expressed his unwavering confidence in the prospective completion of this transaction. Microsoft, he affirmed, will adhere to all the commitments it has made with the European Commission and other regulatory bodies while continuing to collaborate with the Competition and Markets Authority (CMA) of the UK on matters raised by the UK authorities.