Activision Blizzard today announced that it has extended the deadline for the close of its $69 billion takeover by Microsoft to Oct. 18. As per the previous agreement, Microsoft should have closed the deal by July 18th. Due to the delay in getting approval for the deal in the UK, Microsoft was not able to close the deal.
Now, Activision Blizzard and Microsoft have 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 the following:
- 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 further 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.
“Most importantly, we continue to set new standards of excellence for workplace culture and provide joy and connection to hundreds of millions of players around the world. While we continue to have concerns about the economy and growing industry competition, we remain focused on the long-term opportunities ahead and completing our merger with Microsoft,” said Bobby Kotick, CEO of Activision Blizzard.