If Microsoft fails to acquire Activision Blizzard, it will need to pay $2 billion to $3 billion

Yesterday Microsoft abruptly announced the acquisition of gaming giant Activision Blizzard for $95 per share, with a staggering $68.7 billion in transactions, the largest acquisition Microsoft has ever made. After the acquisition, Microsoft will become the world's third largest game company after Tencent and Sony.

The acquisition shook the gaming industry, proving once again that Microsoft is "rich and willful," and there are still many issues worth discussing around the deal itself. In a public filing with the U.S. Securities and Exchange Commission (SEC), new details of the Microsoft and Activision Blizzard deals were disclosed, such as some of the qualifying conditions set by the two sides on the exchange, and the relevant termination clauses were no exception.

According to the terms of the transaction, Microsoft will be required to pay $2 billion to Activision Blizzard if microsoft fails to acquire Activision Blizzard under certain circumstances; $2.5 billion if the transaction is terminated between January 18, 2023 and April 18, 2023; and $3 billion if it is after April 18, 2023. Within the document, specific requirements for termination of transactions and payment of fees are described.

In order to complete the acquisition, Microsoft also needs to obtain shareholder support, as well as regulatory approvals, which may encounter some doubts or scrutiny. As for the transaction itself, it is normally likely to go smoothly. Due to the large amount of money involved and the considerable period of time, there may still be other things happening by April 2023.