Mega-Merger Deadline In Deal Between Microsoft and Activision-Blizzard Extended
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The deal that will see Activision merge with Microsoft is almost fully cleared, with the CMA having delayed their decision deadline to August 29. As such, Microsoft and Activision have extended their closing date for the deal to October 18.
With the FTC losing its injunction case to halt the merger in the US, the CMA quickly opened discussions back up with Microsoft. The UK regulatory body held concerns over cloud gaming, with Microsoft providing more remedies for those concerns. With the original deadline of July 18 not providing enough time to consider those remedies, the CMA extended its deadline by six weeks to August 29.
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That July 18 date was also the deadline for the deal between Microsoft and Activision to be completed. Since there was no possibility that it could with the CMA still considering its final decision, the two companies have agreed to an extension of that deadline. In a press release on July 18, Activision stated the new terms of that agreement. That includes new dates for both final deadline and termination fees.
“On July 18, 2023, Activision Blizzard and Microsoft entered into an agreement waiving certain rights to terminate the merger agreement if the merger has not been consummated prior to October 18, 2023. The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3.0 billion to $3.5 billion if the transaction is terminated after August 29, 2023, and to $4.5 billion if the transaction is terminated after September 15, 2023.
The agreement also includes amendments to Activision Blizzard’s commercial Xbox arrangements with Microsoft, valued at up to $250 million for each of fiscal years 2023 and 2024. The agreement enables Activision Blizzard to declare and pay one regular cash dividend for fiscal year 2023 of up to $0.99 per share, prior to and not contingent on the closing of the transaction.”
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