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Imaginedvl on 19 July 2023
Ryuu96 said:

@Imaginedvl it ain't much but congrats on the $1 extra

Well :) I have 8459 actions, so it is another 8375$ :) Not going to spit on it! 



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EpicRandy on 19 July 2023
Ryuu96 said:

Extended, I Am Shocked /s.

$3bn was nothing compared to the $20bn they would have lost in market valuation.

Termination fee is now $4.5bn (that's fine, Microsoft ain't paying that cause the deal is going through).

Deal price is now effectively $96 a share (up from $95 a share), a $1 dividend + $95 a share original price.

With that I think it's safe to say that Microsoft had the advantage in negotiations.

Obviously, no company was willing to outbid the already high offer.

I think the $1 and increase termination fee are added to stave off potential shareholder grudge that the deal is "extended" without a vote. 

And this makes sense, the extension is simply an agreement between boards that extends the original contracts, it's only legally valid as long as shareholders accept it's legally valid.



Imaginedvl on 19 July 2023

Machiavellian said:
Imaginedvl said:

Very simple :) Their duty is to make more money to the shareholders. Simple as that, that's the prime reason of existence of the board; drive the stock up, not down. Breaking up is going to make shareholders LOSE a lot of money :D

And by a lot, I mean a lot, I'm telling you that the whole board and Bobby would be in BIG trouble if they would do that. 

Actually from the research I did, its not that ABK could be sued that is the problem, its more along what Randy stated in that ABK would need to have a vote on staying or leaving the merger.  Since all of ABK stock has voting rights, its not like the company can quit the deal without going though that whole process.

True, they would need a vote :) I was telling you what would happen if they don't and simply walk away :D

And if they go for a vote, 98% will vote to extend it.



Ryuu96 on 19 July 2023
  • Breakup fee is increasing August 29th.
  • CMA's final order deadline is August 29th.

Microsoft made their breakup fee increase on the exact same date as CMA's deadline.

CMA have said they would issue a decision before that deadline though.

Very obvious Microsoft expects this to wrap up before August 29th.

Last edited by Ryuu96 - on 19 July 2023

Ryuu96 on 19 July 2023



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Ryuu96 on 19 July 2023



Ryuu96 on 19 July 2023

The Federal Trade Commission and Department of Justice said Wednesday that their new focus when evaluating mergers will include the impact a deal will have on competition for workers along with how a series of acquisitions, rather than one-offs, could result in harmful effects on the market.

The new guidelines, currently in draft form, encapsulate the agencies' push to keep pace with the digital age and a changing market. The proposed rules apply to both vertical and horizontal mergers. Almost two years ago, the FTC voted to withdraw the previous version of the vertical merger guidelines released in 2020, citing flaws.

In the new guidelines, they outlined 13 points they will use to evaluate whether a merger should be blocked:

1. Mergers should not significantly increase concentration in highly concentrated markets.
2. Mergers should not eliminate substantial competition between firms.
3. Mergers should not increase the risk of coordination.
4. Mergers should not eliminate a potential entrant in a concentrated market.
5. Mergers should not substantially lessen competition by creating a firm that controls products or services that its rivals may use to compete.
6. Vertical mergers should not create market structures that foreclose competition.
7. Mergers should not entrench or extend a dominant position.
8. Mergers should not further a trend toward concentration.
9. When a merger is part of a series of multiple acquisitions, the agencies may examine the whole series.
10. When a merger involves a multi-sided platform, the agencies examine competition between platforms, on a platform, or to displace a platform.
11. When a merger involves competing buyers, the agencies examine whether it may substantially lessen competition for workers or other sellers.
12. When an acquisition involves partial ownership or minority interests, the agencies examine its impact on competition.
13. Mergers should not otherwise substantially lessen competition or tend to create a monopoly.

FTC and DOJ lay out rules for merger review to reflect digital economy (cnbc.com)



VersusEvil on 19 July 2023

But but but I was told Activision was gonna be a stinky butt and pull out of the deal ….



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G2ThaUNiT on 19 July 2023
Ryuu96 said:
  • Breakup fee is increasing August 29th.
  • CMA's final order deadline is August 29th.

Microsoft made their breakup fee increase on the exact same date as CMA's deadline.

CMA have said they would issue a decision before that deadline though.

Very obvious Microsoft expects this to wrap up before August 29th.

What a way to lead up to the launch of Starfield



G2ThaUNiT on 19 July 2023
Ryuu96 said:

The Federal Trade Commission and Department of Justice said Wednesday that their new focus when evaluating mergers will include the impact a deal will have on competition for workers along with how a series of acquisitions, rather than one-offs, could result in harmful effects on the market.

The new guidelines, currently in draft form, encapsulate the agencies' push to keep pace with the digital age and a changing market. The proposed rules apply to both vertical and horizontal mergers. Almost two years ago, the FTC voted to withdraw the previous version of the vertical merger guidelines released in 2020, citing flaws.

In the new guidelines, they outlined 13 points they will use to evaluate whether a merger should be blocked:

1. Mergers should not significantly increase concentration in highly concentrated markets.
2. Mergers should not eliminate substantial competition between firms.
3. Mergers should not increase the risk of coordination.
4. Mergers should not eliminate a potential entrant in a concentrated market.
5. Mergers should not substantially lessen competition by creating a firm that controls products or services that its rivals may use to compete.
6. Vertical mergers should not create market structures that foreclose competition.
7. Mergers should not entrench or extend a dominant position.
8. Mergers should not further a trend toward concentration.
9. When a merger is part of a series of multiple acquisitions, the agencies may examine the whole series.
10. When a merger involves a multi-sided platform, the agencies examine competition between platforms, on a platform, or to displace a platform.
11. When a merger involves competing buyers, the agencies examine whether it may substantially lessen competition for workers or other sellers.
12. When an acquisition involves partial ownership or minority interests, the agencies examine its impact on competition.
13. Mergers should not otherwise substantially lessen competition or tend to create a monopoly.

FTC and DOJ lay out rules for merger review to reflect digital economy (cnbc.com)

This actually is something I thought about if MS continues to get big acquisitions. Could they eventually be considered a monopoly when it comes to employment in the relevant market. In this case, the gaming market.

If someone just came out of college to be a game developer, and Xbox owns a good chunk of major game companies that have tens of thousands of employees each, you're most likely going to end up working for Xbox by default.

I don't think it'll actually become an issue due to how huge other major publishers are and the likes of Tencent, but that is something that could draw additional scrutiny and make proceedings last even longer.