Activision Blizzard shareholders approve $69B acquisition by Microsoft
Video game giant Activision Blizzard has gotten one step closer to closing the $68.7B transaction with Microsoft, though the deal's far from done yet.
The basics: 2022 has been full of merger, acquisition, and investment movements so far.
- The overwhelming majority of the shareholders at Activision Blizzard, over 98% to be precise, have now approved the proposed acquisition.
- Should the deal go as planned, Microsoft will acquire the Call of Duty and Overwatch publisher at $95 a share. This would mean the total transaction is worth almost $69B.
- While the shareholders are happy for the deal to go ahead, the two parties have more hurdles to jump through before it's solidified. They'll have to get the approval of the US Federal Trade Commission, for example.
- "Industry consolidation and weakened competition have denied Americans of an open economy, with workers, farmers, small businesses and consumers paying the price," said FTC Chairwoman earlier in 2022.
The journey ahead: The acquisition, should it go ahead, is expected to be wrapped up in 2023.
- While shareholders may be happy about the transaction, the current share price for Activision Blizzard is just under $77. You'd expect this to be much higher if investors were optimistic about the buyout actually coming to fruition.
- It seems apparent that plenty of investors are banking on the FTC to actually block (or at least delay) the deal, plus there's the fact that it will also need approval by the likes of China and the European Union too.
- Activision Blizzard is still embroiled in allegations that paint a bad picture of its workplace conditions. While it reached an $18M settlement for a sexual harassment lawsuit in March 2022, its still has legal woes aplenty.