Microsoft will have to pay up to $3 billion in breakup fees if Activision deal doesn't go through

sportskeeda.com:

According to Activision's latest SEC filing, Microsoft will face a massive breakup fee of up to $3 billion in the event of their failure to acquire Activision. The Part 1, Item 1 section of the filing document termed 'Business' clearly states the amount the tech giants are liable for upon termination of the deal.

Activision's acquisition by Microsoft is currently awaiting the approval of regulatory bodies.

Microsoft, a leading technology company, announced its intention to acquire Activision, one of the world's largest gaming companies, in a deal worth $68.7 billion. The proposed acquisition has sparked a great deal of controversy within the gaming industry and among consumers.

Proponents of the acquisition believe that it will lead to greater innovation and resources for game development, ultimately benefiting gamers. However, critics, including big players in the industry, argue that it will negatively impact competition and harm consumers.

Activision's most recent SEC (Securities and Exchange Commission) filing reveals intriguing details about their deal with Microsoft. According to the document, both parties are liable to pay each other huge termination fees. However, the Merger Agreement states that it is the tech giant who will be paying up more in case the deal doesn't go through or is blocked by the regulatory bodies.

The document states:

It further reads:

This clearly shows that in case the deal doesn't go through due to a breach of representations, warranties, or other agreements, as per the Merger Agreement, then Activision will have to pay MS a whopping $2.27 billion in breakup fee.

However, if MS breaches the Merger Agreement and Activision doesn’t, then the former will be liable to pay the latter company an amount