Acquisition & integration costs for Activision will total 400 million in December quarter and 900 million in following quarters - Amy Hood

Heisenberg007

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That's on top of $69 billion?

So an additional ~$1.5 billion they'll spend on integrating ABK studios before they close them. 😛
 
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Bryank75

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That's on top of $69 billion?

So an additional ~$1.5 billion they'll spend on integrating ABK studios before they close them. 😛

and that's only the planned costs associated. There are potentially many other hidden or unexpected costs, especially if things don't go to plan.

This is a potential minefield and will take years IMO
 
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Bryank75

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Why do people keep saying 69 billion? When they agreed on an extension, the price increased do 75B, yeah?

The purchase price goes up to 75 billion when you include Activisions cash on hand.

So MSFT pay the stockholders 75 billion (Most of the big stockholders are common to the two companies anyway) and then MSFT gets 6 billion back in cash. (6.7 is the more accurate figure I believe)

"Zooming in on the latest balance sheet data, we can see that Activision Blizzard had liabilities of US$3.32b due within 12 months and liabilities of US$4.40b due beyond that. Offsetting these obligations, it had cash of US$13.1b as well as receivables valued at US$1.04b due within 12 months. So it can boast US$6.46b more liquid assets than total liabilities."


Also a reddit thread that has several explanations... some better than others;

 

Heisenberg007

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Why do people keep saying 69 billion? When they agreed on an extension, the price increased do 75B, yeah?
That amount was for the cancelation fee IIRC. And the acquisition was never canceled so they never had to pay that fee.
 

Darth Vader

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The purchase price goes up to 75 billion when you include Activisions cash on hand.

So MSFT pay the stockholders 75 billion (Most of the big stockholders are common to the two companies anyway) and then MSFT gets 6 billion back in cash. (6.7 is the more accurate figure I believe)

"Zooming in on the latest balance sheet data, we can see that Activision Blizzard had liabilities of US$3.32b due within 12 months and liabilities of US$4.40b due beyond that. Offsetting these obligations, it had cash of US$13.1b as well as receivables valued at US$1.04b due within 12 months. So it can boast US$6.46b more liquid assets than total liabilities."


Also a reddit thread that has several explanations... some better than others;



Bryan, the original agreed price was 69, and got increased to 75 during the extension.
 

Bryank75

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Bryan, the original agreed price was 69, and got increased to 75 during the extension.

"“I don’t think we won,” Weingarten responded, saying there was no evidence that the “hastily agreed to” contracts would sufficiently protect the market.

Microsoft valued the deal at $68.7 billion when it announced the acquisition in early 2022, “inclusive of Activision Blizzard’s net cash,” though Microsoft agreed to pay $95 in cash for each share of the gamemaker, closer to $75 billion."

It's worded strangely... apparently the 95 they agreed to originally brought it to 75 billion?

Edit: so what I'm getting is that there was some flexibility built into the deal based on market value of the shares....
 
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Darth Vader

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"“I don’t think we won,” Weingarten responded, saying there was no evidence that the “hastily agreed to” contracts would sufficiently protect the market.

Microsoft valued the deal at $68.7 billion when it announced the acquisition in early 2022, “inclusive of Activision Blizzard’s net cash,” though Microsoft agreed to pay $95 in cash for each share of the gamemaker, closer to $75 billion."

It's worded strangely... apparently the 95 they agreed to originally brought it to 75 billion?

Edit: so what I'm getting is that there was some flexibility built into the deal based on market value of the shares....

I can't find it right now so I'll take your world for it. It's inconsequential anyway.
 
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Playstation Sucka

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As @Bryank75 said Atvi had 13 billion dollars cash in hand so when they consummated they got a good bank balance from Atvi as well currently msft has 45 billion cash in hand after transaction