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When Microsoft first announced its intention to acquire Activision Blizzard a little over a year ago, the companies said they expected the transaction to close during the 2023 fiscal year. That schedule now seems highly unlikely, as the Federal Trade Commission has set a hearing on the government’s lawsuit for Aug. 2, he said. This means that the government’s final decision on the matter may be postponed until the fall or beyond.
More importantly, that hearing schedule could delay final merger approval past the contractual deadline to complete the transaction by July 18, as reported by The Associated Press. High. Reaching that deadline would technically trigger the payment of a $3 billion split fee from Microsoft to Activision Blizzard. In practice, however, the deadline may force both parties to return to the negotiating table and renegotiate the details of the deal.
take a fresh look
An opportunity like this to revisit the deal this summer could lead to new perspectives for both sides. The company’s stock price was about $65 more than 40% above. But since that offer, there has been a broader market decline that saw him drop nearly 15% in the S&P 500’s value in just 12 months.
As of this writing, Activision Blizzard’s stock price is $76.94, well below Microsoft’s per-share offer price. The gap reflects market uncertainty over whether the deal will be allowed to proceed and whether Microsoft will be able to maintain its initial offer during renegotiations.
Representatives for Microsoft and Activision have not yet responded to Ars Technica’s request for comment. But both sides have expressed public confidence that the deal will succeed in light of the FTC’s actions. Last month, Activision Blizzard CEO Bobby Kotick sent a message to employees.[ing] I am confident that this deal will go through. Claims that this transaction is anti-competitive are not consistent with the facts and we believe we will win this challenge.”
In a statement issued in December following the FTC’s announcement, Microsoft said, “There is no reasonable and justifiable reason to prevent us from completing the transaction.” The range of distribution options for games has never been greater, and we believe we will win on the merits of litigation.
The FTC’s August hearing date was tentatively set for late December, but a scheduling order issued this week called for witness lists, document requests, expert testimony, hearing evidence, and It officially marks the months before the pre-hearing deadline for the pre-hearing motion.
Outside the United States, the European Commission said it would take a final decision on a “deep dive” into the proposed merger by April 11. matter.
