Following the many allegations of toxic work culture and discriminative behaviour at Activision Blizzard, Microsoft has swooped in to acquire the gaming giant for a record price of almost $69 billion. The deal is far from complete at this point, although an internal vote amongst ABK’s shareholders will be taking place to decide on the same next month- as revealed in a recent SEC (Securities and Exchange Commission) document.
In the document, Activision Blizzard requests all investors to vote in favour of the acquisition during the meeting that will take place on April 28. Given the circumstances under which the company is being acquired, it’s almost certain that failure of the merger will lead to a significant decline in stock price and one cannot be sure whether it will ever return to normal.
“If the merger is not consummated, and depending on the circumstances that caused the merger not to be consummated, it is likely that the price of Activision Blizzard common stock will decline significantly. If that were to occur, it is uncertain when, if ever, the price of Activision Blizzard common stock would return to the price at which it trades as of the date of this proxy statement,” the document reads.
Additionally, its also mentioned that Activision Blizzard might have to pay a termination fee of roughly around $2 billion under select circumstances. Of course, Microsoft might also need to pay ABK the same amount should they fail to comply with any contractual obligations.
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