While everything seemed to be on track, the CMA vetoed the merger between Activision and Microsoft. A blow to the intentions of the two companies, which have already announced that they would appeal the decision, but which represents a big rock.
For now, the team led by Phil Spencer is following the strategy course, signing new ten-year deals with more cloud gaming-focused companies. But if the buying ends up dropping, there will be more than one consequence. And we are not only talking about the cancellation of existing agreements and the fact that several companies are left without Call of Duty, but also the economic consequences for Microsoft.
If the deal doesn’t go through, Activision will receive a hefty amount in the form of burglary compensation.
More specifically, some $3 billion to be paid by Redmond to Activision if the purchase is not made. It is true that this exorbitant amount does not sound like much considering that the purchase was going to close at $69 billion. But just to put it in context, Microsoft will have to pay half of what Bethesda cost them just because the deal doesn’t close.
Undoubtedly, a huge amount of money that Activision will have for its own projects. What Bobby Kotick, CEO of the company, confirmed in an interview with the CNBCensuring that they will invest the money efficiently as they always have.
Well, I think our first approach is to try to close the deal, which I think is in the interests of the industry and the competition. If that’s not done, you know, by the end of the year, I think we’ll have about $18 billion in cash. And I think if you look at our 30-year history, we have deployed capital very well for the benefit of our shareholders and we will continue to do so.
JGBassols
My vocation has always been archaeology, but by chance I ended up falling in love with Egyptology. But I am above all a parakeet and a gamer. Also, I am a lover of good stories. If you don’t see me studying, I’ll be with a controller and a console adventure.
