Microsoft y Activision Blizzard have received great news today when they learned that the CMAthe UK’s market regulator, has largely (but not entirely) loosened its opposition to the merger between the two, handing Microsoft a win over Sony over “custody” Call of Duty.
The Competition and Markets Authority concludes (provisionally) that the merger does not have the risk of entailing a substantial decrease in competition in the console games market.
The result of this decision, a 180-degree change from his previous position, has been immediately felt in the market: Activision Blizzard (ATVI) shares have risen cases a 6%up to more than $84.
The market regains confidence in the purchase of Activision Blizzard by Microsoft
More than $84 is the highest price per Activision share since January 2022, when the purchase of Microsoft was announced.
That day, the stocks rose much higher, a 25,9% to more than 81 dollars per share, coming from the collapse of more than 40% since the summer of 2021.
Activision’s share price was at its lowest since that summer in which the video game industry experienced its “Me Too“, when the numerous cases of sexual harassment and discrimination at Activision Blizzard were exposed, and which directly implicated the (still) CEO of Activision, Bobby Kotick.
With these matters already forgotten, the market is approaching at the price of $95 per share that Microsoft intends to pay (in total almost 68,700 million dollars), reducing the risk premium for those who want to take advantage of the complex and still unresolved transaction.
This rise in the stock market implies that the market is regaining confidence that the agreement will go ahead, despite numerous obstacles.
In fact, a few months after the transaction was announced, Activision shares fell rapidly and they were around 75 dollars, when the harsh opposition that antitrust agencies would make around the world was already beginning to be seen.
Despite this, although it has taken longer than expected, Microsoft has managed to convince the toughest, such as the European Commission a few weeks ago or the CMA now.
We just need FTC date of the United States, led by Lina Khan, which is still against the acquisition, and is the only ally of Sony, which wants by all means to block the deal
To achieve this, yes Microsoft He had to sign agreements with companies like Nintendo committing to release the games Call of Duty and/or other games Activision on your console, and also to other companies dedicated to streaming games: Nvidia (GeForce Now) and Boosteroid.
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