Activision extends Microsoft merger deadline, declares 99-cent dividend

Videogame maker Activision Blizzard Inc.
ATVI,
-0.50%
announced Wednesday an agreement with software giant Microsoft Corp.
MSFT,
+3.98%
to extend the merger deadline by three months to Oct. 18. The potential termination fee payable to Activision was increased to $3.5 billion from $3.0 billion if the deal is terminated after Aug. 29, and to $4.5 billion if its terminated after Sept. 15. Activision also declared a cash dividend of 99 cents, in which shareholders of record on Aug. 2 are paid the dividend on Aug. 17. The companies agreed in January 2022 that Microsoft would buy Activision, with a U.S. federal judge giving the merger the green light last week, and European Union regulators approving the deal in May. Separately, Activision reported second-quarter net income rose to $587 million, or 74 cents a share, from $280 million, or 36 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 91 cents beat the FactSet consensus of 88 cents. Revenue grew 34.2% to $2.21 billion, below the FactSet consensus of $2.38 billion.