On October 16th local time, Microsoft announced the launch of an exchange offer for Activision Blizzard's outstanding debt. Microsoft will issue new notes and cash with a total principal amount not exceeding $3.65 billion, in exchange for any and all outstanding notes issued by Activision. As part of the exchange offer, Activision will seek the consent of qualified bondholders to "adopt certain proposed amendments" to existing bonds, which will cancel certain contracts, restrictive clauses, and default events.