Activision Blizzard Inc. disclosed Wednesday the termination provisions of the $68.7 billion merger agreement with Microsoft Corp. , which include payment of up to $3 billion by Microsoft. The videogame maker said if the merger deal is terminated, including termination under antitrust concerns, if Activision isn’t in material breach of any provisions of the deal, Microsoft would pay a termination fee of $2.0 billion if the termination notice is provided before Jan. 18, 2023; pay $2.5 billion if provided after Jan. 18, 2023 but before April 18, 2023; and pay $3.0 billion if provided after April 18, 2023. If, however, Activision terminates the deal to accept a superior proposal from another buyer, Activision would pay Microsoft a termination fee of $2.27 billion. Meanwhile, Activision said its board of directors has “unanimously” approved the merger deal and recommends shareholders vote in favor of the deal. Activision’s stock slipped 0.1% in premarket trading after soaring 25.9% on Tuesday after the deal was announced. It has still lost 11.6% over the past 12 months, while Microsoft shares have run up 39.8% and the S&P 500 has advanced 20.5%.
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