MSFT, Activision push deal deadline

Yesterday (July 18) was the final day under the merger agreement between Microsoft and Activision. The merger hasn’t consummated, so what happens next? Today, it was announced that the parties agreed to an extension of the merger agreement until October 18. As part of the revised agreement, Microsoft has increased the termination fee payable to Activision (in the off-chance the merger isn’t finalized before the new termination date) to $4.5 billion. The article linked below further states that Activision has agreed to potentially “hold separate the Company or certain assets of the Company or to implement other lawful alternatives to consummate the Merger” with UK regulators. The merger has now been cleared in 40 countries with the UK being the only holdout left. On Monday, the Competition Appeal Tribunal in the UK agreed to adjourn under strict conditions the pending appeal trial between the Competition Markets Authority and Microsoft. Watching Monday’s hearing, it became clear that the judge set those conditions to avoid any gamesmanship by the CMA. It also became clear that the CMA changed tack and is now a lot more cooperative towards Microsoft. By extending the merger agreement, Microsoft shows it is willing to engage with the regulator, find an acceptable solution to its concerns (without harming the intentions of the merger), and maintain a productive relationship with an eye on any future acquisitions. One of the remaining open questions is what Microsoft is proposing to the CMA that would be an acceptable remedy to clear the deal. In Monday’s hearing, it looked like all parties have a specific arrangement in mind where the whole of Activision is being acquired with the exception of certain assets. The lawyers referred to an older case between two two spirits makers where the target’s whisky’s assets were divested to allay competition concerns in the whisky market. This case looks to be a template where, perhaps, Activision’s cloud gaming rights are the equivalent of whisky and the relevant market is cloud gaming… Microsoft increasing the termination fee by a whopping $1.5 billion signals it is confident the deal will close. Investors appear to agree as the Activision share price hasn’t moved too much following this news. The CMA has set itself a new deadline for the updated investigation of August 29, so the deal might clear well before the new merger agreement is set to expire. #microsoft #activision #merger #acquisition #cma #cat #cloudgaming #videogames #corporatestrategy #whisky Microsoft Activision Blizzard Competition and Markets Authority UCL School of Management

Activision Blizzard and Microsoft have extended the deadline for their $69 billion deal by three months to Oct. 18 as they work to secure UK approval for the biggest gaming deal in history. U.S. regulatory efforts to block the takeover and Britain's push to restructure it forced the companies to miss their original cutoff date of July 18. The extension will "provide ample time to work through the final regulatory issues," Microsoft President Brad Smith said in a tweet. "We are confident about our prospects for getting this deal across the finish line." Read more at Reuters - https://lnkd.in/ghdTZ5es

After yesterday's deal deadline came and went, the two companies have mutually agreed to a multi-month extension and a new, increased breakup fee. The companies still need to get clearance from the UK government to close their deal, so this buys them more time while that process unfolds. The blockbuster merger has been described as history's largest tech acquisition and could give Microsoft control over hugely popular franchises like "Call of Duty," "World of Warcraft" and "Diablo."

Microsoft has been one of my watches when it comes to not only AI, but in general. They’ve been in the news recently for a couple things: - another partnership with Meta, which will support for the Llama 2 family of large language models (LLMs) on Azure and Windows. Llama 2 is designed to enable developers and organizations to build generative AI-powered tools and experiences. - pushing back the deadline for the acquisition of Activision to be finalized. They are moving it back three months to be sure that the $69B merger is complete. What’s the hold up? Regulation approval especially after a federal judge called the deal would not lead to a unfair consolidation/UK. - Microsoft's Copilot subscription service adds AI to the company's popular Office products such as Word, Excel and Teams. It will cost an additional $30 per month and could increase monthly prices for enterprise customers as much as 83%, bringing in additional revenue through recurring subscriptions. These three situations shows how serious of a bet that Microsoft has when it comes to AI. Also when it comes to dominance over what Google is aiming to curate — let’s not forget OpenAI. Microsoft shares rallied to an ATH after the company announced pricing for its new AI subscription service. The AI race isn’t hype anymore but going to look different by the sector and the scene. The winner would be who takes the data and merges it the best with their infrastructure. #microsoft #ai #acquisitions #meta

Microsoft and Activision Blizzard have mutually agreed to extend the deal deadline until after October 18th. If the deal isn’t completed by this date, the fee that Microsoft will have to pay Activision Blizzard will either be $3.5B (if canceled after August 29th) or $4.5B (if canceled after September 15th). The deal also values Activision Blizzard’s commercial Xbox arrangements with Microsoft at up to $250M per year for FY23 and FY24. Overall, this gives the two companies a better chance at overcoming their final hurdle, which is now the United Kingdom’s Competition and Markets Authority. The CMA is expected to make a decision by August 29th on whether the deal will be blocked or not in the UK. Follow #MoreMark for #Business content in #Gaming, #Esports, and #Creators!

Microsoft and Activision extend the deadline for their $68.7 billion merger to October 18th https://ift.tt/rcOKvhj After 18 months of battling their way through regulatory red tape, Microsoft and Activision Blizzard are closer than ever to making their merger happen. However, with some issues still to smooth out in the UK, the companies weren't able to neatly tie things up in time for their initial July 18th deadline. As such, they've agreed to extend their merger agreement by three months to get the $68.7 billion acquisition over the line. 'Microsoft and Activision Blizzard have jointly agreed to extend the merger agreement deadline from July 18th, 2023 to October 18th, 2023, to allow for additional time to resolve remaining regulatory concerns,' Microsoft said in a statement.  If they hadn't agreed on new terms and either side walked away (which they could have done as of today), Microsoft would have been on the hook for a $3 billion breakup fee. That termination fee will increase to $3.5 billion if the merger hasn't closed by August 29th and $4.5 billion if it's not a done deal by September 15th. The fee will only be paid if the acquisition doesn't close. In addition, they agreed that Activision can give its shareholders a dividend of $0.99 per share. 'Microsoft and Activision Blizzard remain optimistic that we will get our acquisition over the finish line, so we have jointly agreed to extend the merger agreement to October 18th, 2023,' Microsoft Gaming CEO Phil Spencer wrote in a note to employees. 'While we can technically close in the United States due to recent legal developments, this extension gives us additional time to resolve the remaining regulatory concerns in the UK.' Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We're optimistic about getting this done, and excited about bringing more games to more players everywhere. — Phil Spencer (@XboxP3) July 19, 2023 The Competition and Markets Authority, the UK's antitrust regulator, initially blocked the deal in April based on concerns over its impact on the cloud gaming market (deals Microsoft signed with third-party cloud gaming platforms were enough of a remedy for the European Union to approve the merger). Microsoft appealed the CMA's decision but with just days to go before the deadline, the CMA said it would be willing to review a modified merger proposal. The CMA, Microsoft and Activision submitted a joint proposal to an appeals tribunal to delay their litigation by two months in an attempt to resolve the regulator's concerns amicably. The appeals tribunal granted that request on Monday. The CMA has also given itself an extra six weeks, until the end of August, to review Microsoft's new proposal. However, it hopes to do so as quickly as possible. It's not quite clear when this might all be wrapped up one way or the other, but the CMA and both companies are aiming to do so very soon and cert...

Activision Blizzard has extended the deadline for the close of its $69-billion takeover by Microsoft to October.

Microsoft is in talks about an extension of its acquisition contract with video game maker Activision Blizzard, which is set to expire on Tuesday, so the parties can overcome the remaining regulatory hurdles to their $69 billion deal. The expiration of the contract would not automatically lead to the collapse of the deal, as it simply affords either company the right to walk away from the transaction. Nonetheless, Microsoft, which makes the Xbox gaming console, has been seeking the contract extension to ensure that Activision is not wooed by another potential acquirer or has a change of heart. Story for Reuters https://lnkd.in/e4qmFGse

Discussions on extending the deadline for Microsoft - Activision Blizzard $69bn acquisition are ongoing⚡ Deal was due to be completed by the end of today⌛ If it is not completed, Microsoft is expected to pay a $3bn fee to #Activision Blizzard and renegotiate the terms and price of the acquisition 💰 #Microsoft has secured approval for the deal in the European Union, 30 other markets, and faces no regulatory obstacles in the US. UK Competition and Markets Authority is aiming to make a decision before August 29. Analysts say parties are committed to making deal happen ..."both the ActivisionActivision Blizzard and Microsoft signatories are ready with pens in hand." 🖊 #videogames #deals #acquisitions