Activision Blizzard, Microsoft Extend Merger Agreement To October; Activision Declares Dividend

(RTTNews) - While reporting financial results for the second quarter on Wednesday, Activision Blizzard, Inc. (ATVI) said that Activision Blizzard and Microsoft Corp. (MSFT) on Tuesday entered into an agreement waiving certain rights to terminate the merger agreement if the merger has not been consummated prior to October 18, 2023.

The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3.0 billion to $3.5 billion if the transaction is terminated after August 29, 2023, and to $4.5 billion if the transaction is terminated after September 15, 2023.

The agreement also includes amendments to Activision Blizzard's commercial Xbox arrangements with Microsoft, valued at up to $250 million for each of fiscal years 2023 and 2024.

The agreement further enables Activision Blizzard to declare and pay one regular cash dividend for fiscal year 2023 of up to $0.99 per share, prior to and not contingent on the closing of the transaction.

Also on Tuesday, the Company's Board of Directors declared a cash dividend of $0.99 per share of the Company's outstanding common stock, payable on August 17, 2023, to shareholders of record at the close of business on August 2, 2023 from cash on hand.