SEC filings show that if the acquisition fails, Microsoft will pay Activision Blizzard $2-3 billion

Whiplash January 20 news, for Microsoft and Activision Blizzard's $68.7 billion transaction continues to attract attention.

Today, according to a public filing released by the U.S. Securities and Exchange Commission, new details about the merger of Microsoft Games and Activision were disclosed. The document sets out some of the conditions of the upcoming deal between Xbox and Activision Blizzard.

According to the termination clause of the agreement, if the transaction fails under certain circumstances:

If the transaction is terminated by January 18, 2023, Microsoft will need to pay Activision Blizzard a fee of $2 billion.

If termination notice is provided after January 18, 2023 and before April 18, 2023, a fee of $2.5 billion will be charged.

If termination notice is provided after April 18, 2023, Microsoft must pay Activision Blizzard a total of $3 billion.