The transaction can be terminated by
MS or ABK if:
- Both parties agree.
- The Activision Blizzard stockholders reject it (it was already approved, so it's doesn't apply anymore).
- A court or a regulator rejects the deal and there is no way to appeal it.
- There is a new law that prohibits this kind of deal.
- By January 18th 2023 or April 18th 2023 the deal is still pending but NOT for regulatory reasons.
The transaction can be terminated by
ABK if:
- There is an infringement of the agreement by MS and during the period to resolve that, MS doesn't do anything.
- Before the approval by Activision Blizzard stockholders, ABK receives a better offer and pays MS a $2,270,100,000 termination fee.
The transaction can be terminated by
MS if:
- There is an infringement of the agreement by ABK and during the period to resolve that, ABK doesn't do anything.
- The Activision Blizzard Board of Directors doesn't recommend the deal anymore.
If the deal doesn't happen, someone has to pay for it :p
Activision Blizzard has to pay
Microsoft a termination fee of $2,270,100,000 if:
- MS is still waiting for the ABK stockholders meeting to happen by the termination dates.
- Regulatory conditions were not satisfied and the reason is a breach by ABK.
- ABK infringes the agreement.
- The ABK stockholders reject the deal.
- The Activision Blizzard Board of Directors doesn't recommend the deal anymore.
- ABK receives a better offer.
Microsoft has to pay
Activision Blizzard a termination fee of:
- $2,000,000,000, if the termination notice is provided prior to January 18th, 2023.
- $2,500,000,000, if the termination notice is provided after January 18th, 2023 and prior to April 18th, 2023.
- $3,000,000,000, if the termination notice is provided after April 18th, 2023.
Reasons for this possible termination fee in favor of ABK:
- A court or a regulator rejects the deal and there is no way to appeal it.
- There is a new law that prohibits this kind of deal.
- MS infringes the agreement.
- Regulatory conditions were not satisfied and the reason is a breach by MS.