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If the deal is unsuccessful, Microsoft will be required to give Activision $3 billion

If the deal is unsuccessful, Microsoft will be required to give Activision $3 billion
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In recent days, the CMA Trade Committee stated that they disapprove of Microsoft’s plan to acquire Activision Blizzard, and Microsoft has responded with an appeal that might delay the deal until 2024. But if the acquisition never happens, what will be the consequences and penalties that need to be paid?

During a recent interview with CNBC, Bobby Kotick, the CEO of Activision Blizzard, stated that if the deal is not concluded by the end of 2023, Microsoft will have to pay a minimum of $3 billion. Activision, however, desires the acquisition to take place as soon as possible, as it will significantly profit from it. Nonetheless, even if the acquisition does not happen, the company will still make significant money by the end of this year.

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In a recent interview with CNBC, Bobby Kotick explained.

My top priority is to finalize the agreement, which I believe would benefit the competitive market. If we fail to do so by the end of the year, we’ll have almost $18 billion in cash. Over the last 30 years, we’ve consistently made good investment decisions that have benefited our shareholders, and we’ll keep doing so.

In brief, Bobby Kotick states that the company’s primary objective is to finalize the agreement, but even if it falls through, Activision Blizzard will still receive a profit of at least $3 billion from Microsoft Xbox. This will enable the company to distribute some interest and extra funds to those shareholders who hold the largest stake, courtesy of Bobby Kotick and the Activision Management team.

Usually, we are still awaiting the FTC’s decision, due in June, but given that the CMA has already rejected it, there is a high chance that the FTC will do the same. Consequently, Microsoft will appeal, and the ultimate decision on the deal will be delayed until 2024.

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If the deal is unsuccessful, Microsoft will be required to give Activision $3 billion
Download If the deal is unsuccessful, Microsoft will be required to give Activision $3 billion 
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