Despite the difficulties faced during the regulatory review process, Microsoft’s purchase of Activision Blizzard King has not lost its favorable prognosis in the financial sector and investment firms have maintained the acquisition with purchase status for those interested in doing business with their shares. Recently, one of the most important financial groups did the same after what happened in the United Kingdom.
The financial sector is more confident than ever in the approval of the Activision purchase
Citigroup, a multinational financial group, updated its forecast related to the purchase of Activision Blizzard King by Microsoft, going from 50% to 70% in terms of probability of approval. The change responds to the renewed position of the UK Competition and Markets Authority (CMA) which recently stated that there are no elements to consider that the purchase of Activision and what happens with Call of Duty affects the industry and its environment. competitive given the remedies offered by Microsoft to ensure that there will not be a monopolistic practice.
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Citi has all scenarios covered, but expects Microsoft to acquire Activision
Based on this update, Citi takes it almost for granted that the largest purchase in gaming history will be approved and now the forecasts are beginning regarding the closing price of Activision’s shares once the deal is approved. . In this sense, the financial group raised its forecast from $88 to $91 USD in accordance with the most favorable scenario that would register a final price of $95 USD per share.
However, and before turning on the alarms, Citi acknowledges that the operation between Microsoft and Activision Blzizard is covered both in the most favorable conclusion (without final opposition from US, UK and European regulators) and in the worst scenario (a blockade by a regulator) so there are price per share estimates in each scenario, so in theory a hypothetical setback from a commercial authority would not be a financial disaster for the companies involved.
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