Activision shareholders approve Microsoft deal
Will the deal end up going through?
Microsoft’s intended to acquire Activision Blizzard for quite some time. Since January, they’ve made their goal quite clear with a $68.7 billion deal. As of April 28th, Activision shareholders overwhelmingly voted to approve the $68.7 billion sale of Microsoft’s acquisition of Activision Blizzard. However, with the company’s current stock price, some Wall Street investors seem skeptical the deal will come to fruition.
Activision shareholders say yes
Back in early January, Microsoft revealed their acquisition would result in $95 a share for a total of $68.7 billion, including net cash. As a wholesale purchase, Microsoft acquires all studios owned by the company, and with that, ownership of franchises such as Call of Duty and Overwatch.
Despite the overwhelming vote by Activision shareholders, Wall Street investors noted Activision Blizzard’s stock price fell to their lowest since the deal’s announcement. Their stock fell to $76.10 per shape, down 1.3%. While that number may not seem like a huge drop, it’s 20% lower than Microsoft’s bid.
Though 98% of shareholders vie for the deal, the acquisition must still pass inspection by the Federal Trade Commission. Along with approving the $68.7 billion deal, shareholders also approved payouts for Activision’s top leadership. CEO of Blizzard Bobby Kotick reportedly may see a $22 million bonus. Then again, only if Activision board members allow to let him stay as CEO after overseeing sexual misconduct and discriminatory behavior within the company. Currently, Kotick stands as one of the highest paid CEOs in America.
Will the Microsoft-Activision deal pass?
If the deal goes through, it would be the largest U.S. technology transaction to date. Other concerns come with it, such as franchises like Call of Duty staying multiplatform. Microsoft assured such titles will remain available based on existing agreements with Activision. How that may change in the future seems unclear. In the case the deal gets rejected by the Federal Trade Commission, Activision could be left struggling. With recent game delays, weak sales, and no release dates for titles like Overwatch 2, it’s difficult to say what would happen if the deal ends up denied.