| Spade said: Would Activision really not extend the deal? Seems kind of stupid if they don't. Would only benefit them tbh money wise, unless what? they need a short term cash infusion with the penalty? |
Activision stock is way better now than it was when Microsoft acquired them.
I think people overestimate how much ABK will be hurt, when the CMA blocked the deal and everyone thought it was dead, their stock did fall but ultimately held steady and nowhere near the lows of when Xbox acquired them.
With Diablo having just released and $12bn cash in the bank, Activision can do stock buyback to please their investors and increase the value of their remaining shares to mitigate any loss from the deal dying.
Simply put Activision is in a far far better position now than they were last year, most of the lawsuits are settled, everyone has mostly moved on, their games are selling ridiculously amazing and they have $12bn cash to play with to please investors.
Thus Microsoft will likely have to exceed their offer by quite a bit, on top of a higher breakup fee, I'd be absolutely shocked if the extension is still $69bn. Now we're back to negotiations, how far is Microsoft willing to go and how greedy with Activision get.
$12bn cash in the bank + $3bn from Microsoft for the breakup.
Microsoft is in a weaker negotiation position now than in 2021.
Last edited by Ryuu96 - on 12 June 2023
