While both Microsoft and Activision have said they will appeal the CMA’s decision, the deal looks unlikely to go through, which would be a crushing blow to both companies. Adding salt to Microsoft’s wounds, however, is the fact that even if the deal is not approved, Microsoft will still pay Activision Blizzard a considerable amount — $3 billion, to be exact — as a breakup fee.
The same news was revealed by Activision Blizzard CEO Bobby Kotick in an interview with CNBC.
When asked how Activision Blizzard would invest the money if the acquisition failed, Kotick said, “I think our primary focus is to try to get this deal done, and I think it’s in the interest of the industry as a whole and in the interest of competition. If it doesn’t get done, you know, by the end of the year, I think we’ll be sitting on about $18 billion in cash. If you look at our 30-year history, you’ll see that we’ve capitalized well for the benefit of our shareholders, and we’ll continue to do that.”
Of course, if the acquisition goes through, Microsoft will pay $69 billion, and $3 billion is a pittance compared to that. But it’s not a small amount either. By comparison, it’s almost half the cost of Microsoft’s acquisition of B.
