IT House January 20 news that Microsoft and Activision Blizzard's $68.7 billion transaction has completely disrupted the entire industry, surprising almost everyone. Today, some new information revealed what would happen if the deal didn't go through.
In a public filing released by the U.S. Securities and Exchange Commission (SEC), some new details about the merger of Microsoft Games and Activision were disclosed. The document describes 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.
IT Home understands that in order for the deal to go smoothly, Microsoft still needs to obtain approval from Activision Blizzard shareholders and regulators. However, due to the situation of the transaction itself, the transaction is likely to go smoothly.
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