Activision Blizzard stockholders back $68.7 billion Microsoft deal

In a press release, Activision Blizzard, Inc. announced that more than 98 percent of its stockholders approve the acquisition proposal from Microsoft. To recall, the American tech company declared last January its plans to acquire Activision Blizzard at USD 95 per share, the entire deal amounting to around USD 68.7 billion.

The transaction is expected to be concluded during the fiscal year ending on June 30, 2023, and is anticipated to give Microsoft a substantial market share in the gaming industry.

“Today’s overwhelmingly supportive vote by our stockholders confirms our shared belief that, combined with Microsoft, we will be even better positioned to create great value for our players, even greater opportunities for our employees, and to continue our focus on becoming an inspiring example of a welcoming, respectful, and inclusive workplace,” said Activision Blizzard CEO Bobby Kotick.

The Microsoft offer is higher than Activision Blizzard’s current stock price, which ranges between USD 76 and USD 80 in the past month. This premium is also higher than what Tesla and SpaceX CEO Elon Musk has offered in the acquisition of Twitter. At USD 54.20 per share, the full amount of the transaction is placed at USD 44 billion.

Despite this overwhelming support from Activision Blizzard, further hurdles remain in the process. Among them would include the United States Federal Trade Commission (FTC), which is set to review the deal.

“Evidence suggests that decades of mergers have been a key driver in consolidation across industries, with this latest merger wave threatening to concentrate our markets further,” FTC Chair Lina Khan said in a press conference earlier this year.

Nonetheless, analysts indicate that even if an FTC challenge does not ultimately prevail, a protracted legal fight might influence the concerned companies to abandon the deal.