The purchase agreement of Activision Blizzard by Microsoft it will not be closed soon nor will it be an easy process to complete. After learning that the Federal Trade Commission has requested more information about this historic agreement —the largest movement in the history of Microsoft—, the corporation led by Bobby Kotick warns of the negative impact on the stock market that it can have if it does not go ahead.
Those 68.7 billion dollars are just the beginning of a process that requires numerous supervisions by organizations such as the Federal Trade Commission (FTC) and other antitrust institutions that guard against monopolistic practices. In a recent document sent by Activision Blizzard to its investors through the Securities and Exchange Commission (SEC), the corporation asks shareholders to vote in favor of the acquisition on April 28date on which an extraordinary meeting will be held to decide whether or not to approve the acquisition.
“If the merger is not consummated, and depending on the circumstances that have caused the merger not to materialize, Activision Blizzard’s common stock price is likely to decline significantly”, Warns Activision, which closed its value on the NASDAQ in $79.07 on this Wednesday night. The deal was pegged at $68.7 billion ($95 per share), so AB came out significantly ahead. We are talking about a 46% premium compared to its market value the day before, on December 19, 2021.
In the following article, we will tell you, step by step, how the purchase agreement for Activision Blizzard was closed by Microsoft.
When will Activision Blizzard join Microsoft if it goes ahead?
For the agreement between Activision Blizzard and Microsoft to go ahead, which will be incorporated around June 2023 into the Xbox ecosystem under the Microsoft Gaming label, it is necessary for the FTC to supervise a detailed investigation that determines if this acquisition can compromise in any way. way the health of the market. Xbox has repeated its communications on numerous occasions that, if the agreement is consummated, they will continue to be third parties, behind Tencent and Sony at the annual billing level.
Microsoft Gaming would thus add a multitude of licenses and subsidiary studies of what is one of the largest publishers in the sector. Activision (Call of Duty), Blizzard Entertainment (World of Warcraft, Diablo IV, Overwatch 2) y King (Candy Crush). We are talking about more than 400 million active players per month only from Activision.
Bobby Kotick, CEO of Activision Blizzard, was accused of mistreatment and concealment. He is currently still in office and will not leave it, apparently, until this historic agreement is closed. The economic amount of his departure is multimillionaire, being the majority shareholder, added to an additional clause if he is fired.
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