Microsoft has unveiled exchange offers as part of its acquisition of Activision Blizzard. Under this merger, Activision Blizzard will be absorbed as a wholly-owned subsidiary of Microsoft. The exchange offers will allow eligible holders to trade their existing Activision Blizzard notes for new Microsoft notes and cash. Microsoft also committed to fair labor with its new ‘future employees’ from Activision Blizzard.
Activision Blizzard notes are debt securities issued by Activision Blizzard, Inc. These notes are used to raise capital for the company’s operations and investments. Microsoft is offering to pay off Activision Blizzard’s notes. Investors who own Activision Blizzard notes can choose to exchange their notes for new Microsoft notes and cash.
In easier terms, Imagine that Activision Blizzard is a restaurant, and the notes are like gift certificates that people can buy to eat at the restaurant. Microsoft is buying the restaurant, and as part of the deal, Microsoft is offering to exchange the gift certificates for new Microsoft gift certificates and cash. Suppose you have an Activision Blizzard gift certificate. In that case, you can choose to exchange it for a new Microsoft gift certificate and cash.
The exchange offers and consent solicitations are open to eligible holders who meet particular criteria. Eligible holders in Canada may need to complete additional paperwork for regulatory purposes.
It’s been asked holders to keep in mind an Early Tender Date, Expiration Date, Early Settlement Date, and Final Settlement Date.
Even though all this feels like a hassle to noteholders, This financial maneuver is a significant step after the merger between Microsoft and Activision Blizzard.