Microsoft’s acquisition of Activision Blizzard is closer than ever to completion. Until now, the main stumbling block for the Redmond company were the market regulatory bodies and commissions… but it seems that they have given their approval to the purchase.
Last Friday, we told you that the UK CMA has positioned itself favorably towards Microsoft, stating that this deal “would not result in a substantial reduction of competition in relation to console games in the UK.”
In other words, the British body (Sony’s biggest backer to date) believes that the purchase of Activision Blizzard does not violate the fairness of the market in the United Kingdom.
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Does this mean that the purchase is approved? Not quite, since the CMA will publish the final resolution on April 26. However, everything indicates that the purchase of Activision Blizzard will finally be made.
In fact, the value of Activision Blizzard shares it is at 84.39 dollarsand according to CitiBank this could amount to a figure close to 90 dollars.
20% more options to close the purchase
According to CitiBank (via SeekingAlpha), the odds of Microsoft closing the purchase of Activision Blizzard are 70%, a huge improvement over 50% established above (although they are estimates).
At the expense of the CMA presenting its final report (on April 26), it seems that the British body will approve the purchase, as the EU did two weeks ago.
Should the deal be approved globally, CitiBank believes that Activision Blizzard’s stock value will rise up to $88, or even a value of $91 per share.
”For investors willing to own Activision through 2024, we see $11 up ($95 minus $84) and $2 down ($82 minus $84). In effect, Activision is akin to a very low-cost call option in the Microsoft transaction getting approval.”
After the approval of the CMA (last Friday), the value of the shares rose by 6 dollars. In the event of a negative scenario, this value would be set at around 68 dollars.
However, a refusal would not be the end for Activision Blizzard either. According to CitiBank, an additional 14 dollars would be added to these 68 dollars, setting a recovery up to 82 dollars per share.
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We will have to wait until April 26, but everything looks like success for Microsoft. In the event that the purchase is completed and it receives the approval of the agencies, it is said that in 2024 they will open a store for games and mobile applications.
Related to Microsoft, today we learned that the company will stop offering the Game Pass offer for 1 euro. However, another class of promotions will be chosen for new users of the service.