Microsoft's deal to acquire Activision Blizzard for $68.7 billion was always going to be subjected to close scrutiny, and the FTC just asked both companies for more information.
As Wccftech reports, Activision Blizzard published a 70-page proxy filing which including reference to the request by the FTC. As the proxy filing explains:
"On March 3, 2022, Activision Blizzard and Microsoft each received a request for additional information and documentary material (which we refer to as a “Second Request”) from the FTC in connection with the FTC’s review of the transaction. The effect of the Second Request is to extend the waiting period imposed under the HSR Act until the 30th day after substantial compliance by Activision Blizzard and Microsoft with the Second Request, unless the waiting period is terminated earlier by the FTC or as otherwise agreed between the parties and the FTC. Completion of the transaction remains subject to the termination or expiration of the waiting period under the HSR Act and the satisfaction or waiver of the closing conditions specified in the merger agreement."
Both Microsoft and Activision still intend to have the deal completed before the end of Microsoft's fiscal year on June 30, 2023. However, it's not just the FTC's approval standing in the way of Microsoft's billions.
The proxy filing also includes an invite for Activision Blizzard stockholders to a virtual "special meeting" where they will vote either for or against the merger with Microsoft. The company's board of directors are obviously encouraging all stockholders to approve the deal, and in return $95 in cash will be received for every share of common stock.
As the filing makes clear:
"Your vote is very important, regardless of the number of shares that you own. We cannot complete the merger unless the proposal to adopt the merger agreement is approved by the affirmative vote of the holders of a majority of the shares of Activision Blizzard common stock outstanding and entitled to vote thereon."
Any stockholder who doesn't vote is automatically counted as voting against the merger, which is why Activision is so keen for everyone eligible to cast their vote.
The special meeting is set to be held on April 28, and is likely to be the last big hurdle both companies need to navigate to ensure the merger goes ahead. Microsoft is attempting to ensure the FTC approval goes smoothly by pledging long-term support for Activision's games on PlayStation.