… or at least that is what Microsoft and ABK want the judge and the FTC to believe.
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I don’t think it has to do with whether they think they can or cannot negotiate an extension more then they don’t want to
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I think a bit of both…
That really doesn’t reinforce that at all. Any extension of the merger deal will likely cost Microsoft some additional money that they would obviously prefer to avoid spending if possible, even if they know that they can and will negotiate a new deal extension if forced to do so.
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They’re just saying what they have to to keep things speedy.
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Deal is dead if the PI is granted. They are letting the judge know that she is deciding whether or not to penalize Microsoft 3 billion dollars.
Yeah MS laid out in clear terms what I said yesterday. The deal is entirely dependent upon the FTC losing the PI. I am not as certain as some that the FTC will lose. But I have no expert insight to US law. I just don’t trust the people involved.
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To me this suggests that MS may be really intending to close before July 18 if they win FTC challenge but who knows. I’m not an expert.
This also tells us that MS will likely close around the CMA if they want to make that July 18th date
Even though Beard said during the CM hearing that theyd drop the date if they got a July hearing
MS should be able to negotiate an extension (maybe 3-6 months) but theyd likely have to slap $2B onto the termination fee
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I’ve long thought an extension would be very tricky to keep shareholders and investors on board either side and essentially the U.K. chances are seen as low and the US process if a PI is awarded is potentially very very long. So either way I think an extension is difficult.
I think the whole deal now comes down to the PI and whether MS are prepared to close over the CMA.
Someone else mentioned that MS can keep ABK happy if they paid a dividend, like $500M per quarter until the deal is done.
What a development.
I think the fact that the FTC accelerated their plans is pretty clear indication that MS was already prepared to do just that.
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I also believe that Microsoft intends to deal with the FTC if they do end up having to drop this. They case they cited a Supreme Court case and the FTCs recent rule change. An unconstitutionality challenge to the ALJ process may be coming if they fail.
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I doubt it because for ABK this deal also helps with their legal problems. (conspiracy time) This feels more like it’s about the CMA argument of the FTC blocking the deal, as the FTC doesn’t block, their argument has no weight.
Imo, the CMA contacted the FTC to get them to act to give their argument a more legitimate spin. But the FTC know they can’t win, so they’re trying to stall to give the CMA a talking point. So the 2 are colluding once more for the sake of big tech bad.
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These legal strategies fly over my head.
Just wait for the verdict.
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Yeah I know but some people are saying this is good and others this is bad.