The merger agreement may be terminated at any time prior to the effective time of the merger, whether before or after the adoption of the merger agreement by Activision Blizzard stockholders, in the following ways:
• by either Activision Blizzard or Microsoft if:
(...)
• the merger has not been consummated before 11:59 p.m., Pacific time, on January 18, 2023, which we refer to as the “termination date,” except that (i) if all conditions have been satisfied (other than those conditions to be satisfied at the time of closing of the merger) or waived (to the extent permitted by applicable law) by that date, but on that date the regulatory conditions or the injunction condition (solely with respect to antitrust, competition or foreign investment laws) has not been satisfied, then the termination date will automatically be extended to 11:59 p.m., Pacific time, on April 18, 2023 and (ii) if all conditions have been satisfied (other than those conditions to be satisfied at the time of closing of the merger) or waived (to the extent permitted by applicable law) by April 18, 2023, but on that date the regulatory conditions or the injunction condition (solely with respect to antitrust, competition or foreign investment laws) has not been satisfied, then the termination date will automatically be extended to 11:59 p.m., Pacific time, on July 18, 2023, except that a party may not terminate the merger agreement pursuant to this provision if such party’s material breach of any provision of the merger agreement
The termination date is coming and it is unclear whether Microsoft is going to acquire Activision Blizzard due to United Kingdom's regulatory issues, even though they just won their preliminary injuction in the US.
Microsoft appeal to the Competition Authority Tribunal in the UK is scheduled to happen only in the end of the month.
This market will resolve only to one alternative. I won't bet
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From the ABK press release:
On July 18, 2023, Activision Blizzard and Microsoft 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 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. Please refer to our Current Report on Form 8-K filed on July 19, 2023 for further detail.
I plan to resolve this market to EXTEND THE TERMINATION DATE in 1 hour absent any strong opposition.
Microsoft, Activision agree to extend deal deadline to Oct. 18
PUBLISHED WED, JUL 19 2023
8:40 AM EDT
UPDATED 3 MIN AGO
https://www.cnbc.com/2023/07/19/microsoft-activision-agree-to-extend-deal-deadline-to-oct-18.html
Statement by Activision Blizzard
Merger Agreement with Microsoft Extended to October 18, 2023 In Return for Higher Termination Fee, New Commercial Arrangements. Activision Blizzard Board Declares $0.99 Per Share Dividend.
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What happens regarding resolving this market if the deadline expires without agreement to extend it but they continue talks to extend the deadline. Either party can walk away but that does not mean they will walk away.
@ChristopherRandles I don't know. Likely N/A. I'll wait a couple of days for a conclusion and I think it's reasonable to resolve to They will extend the termination date again if they extend it tomorrow. But if it takes much longer, I think it's likely I'll resolve to N/A.
@MP
If you wait a couple of days, would you be effectively be changing the question and would you extend the market?
Just my personal opinion. I would say it if there is no announcement by the time your market closes based on the question, than that would qualify as an N/A since no announcement of either of the choices were met at market close/question date.
@SirCryptomind The resolution doesn't depend in an announcement, but on the outcome. If tomorrow or later they came and say, "hey guys, we actually extended the deal two days ago, sorry we didn't tell you", this market resolves to YES.
For example, if Kotick and Nadella have a verbal deal to extend today, but the lawyers only do that later, I am resolving to YES.
I think I'd only resolve to N/A if we have meaningful evidence, they didn't extend the date today and extended it later.
I have a significant position on /MP/will-microsoft-complete-the-activis
All the mana I put behind this market has been well worth for me to hedge at 0.1%
analysts think its going on hold
https://ca.finance.yahoo.com/video/microsofts-activision-blizzard-deal-comes-151652259.html
Notice of extension of statutory period to make an order
14 July 2023: The Inquiry Group has decided to extend by six weeks under section 41A(2) of the Act the period for the discharge of its duty under section 41(2) of the Act, as it considers that there are special reasons to do so. The revised period will therefore end on 29 August 2023.
https://www.gov.uk/cma-cases/microsoft-slash-activision-blizzard-merger-inquiry
According to the contract, Microsoft and Activision Blizzard must close the deal by Tuesday, July 18. If the deal is not completed by that date, even if due to third-party antitrust concerns, Microsoft will be required to pay Activision Blizzard a $3 billion fee, unless both parties agree to extend the deadline.
Microsoft and Activision could negotiate a deadline extension for their impending merger, and ATVI shareholders may get a higher premium as a result.
The Federal Trade Commission is appealing a federal judge’s ruling that clears the way for Microsoft to complete its $69 billion merger with Activision.
https://deadline.com/2023/07/microsoft-activision-merger-ftc-1235434138/
Britain's competition regulator on Friday extended its final deadline on Microsoft's Activision Blizzard deal to Aug. 29 after its received a "detailed and complex" new proposal from Microsoft that claimed material changes in circumstance.
https://finance.yahoo.com/news/uk-regulator-extends-microsoft-activision-083522203.html
