ATVI - Activision downgraded at Raymond James as Microsoft deal likely to close soon
2023-07-11 16:35:35 ET
Activision ( NASDAQ: ATVI ) was downgraded to market perform from outperform at Raymond James as the videogame maker's sale to Microsoft ( NASDAQ: MSFT ) is likely to close by a deadline of next Tuesday.
"Today's developments in the U.S. and U.K. reviews of the MSFT/ATVI deal point strongly toward a deal close," Raymond James analyst Andrew Marok wrote in a note on Tuesday. "A double dose of major developments today in the MSFT/ATVI acquisition saga has significantly shifted the balance of probabilities of deal close, and we now see a likely deal completion by the July 18 deadline."
The analyst comments come after a federal judge denied the Federal Trade Commission's request for a preliminary injunction to block the $69 billion Activision ( ATVI ) deal. In addition, the UK anti-trust authority and Microsoft agreed to stay litigation in the regulator's attempt to block the combination.
Microsoft (NASDAQ: MSFT ) is offering to make a small divestiture to meet the objections of the UK's antitrust regulator to its planned Activision ( ATVI ) deal, according to CNBC's David Faber. Microsoft ( MSFT ) is offering a "small and discrete" divestiture to the UK's Competition and Markets Authority that it believes the regulator will accept.
"Given our view that the UK was the thorniest process to navigate, this shift significantly reduces the barriers that the deal faces in the market (and therefore, globally)," Marok wrote.
Raymond James' Marok said he's downgrading the stock to market perform from outperform given today's move in the stock and what is likely a near-term completion of the deal at its $95 a share deal price. Activision's ( ATVI ) shares soared 10% to $90.94 on Tuesday.
More on Activision/Microsoft
- FTC Vs. Microsoft: FTC Wins
- UK court filing may be positive for Microsoft deal for Activision - report
- Microsoft - Activision Deal May Close After All
- Activision Calls Could Pop But...
- Activision Blizzard: Unlocking The Power Of Entertainment
- Microsoft Troubles Open Activision Investors To An Attractive Opportunity
- ATVI Could Be An Arbitrage Play With Or Without The Microsoft Deal
More on Activision/Microsoft
- FTC Vs. Microsoft: FTC Wins
- UK court filing may be positive for Microsoft deal for Activision - report
- Microsoft - Activision Deal May Close After All
- Activision Calls Could Pop But...
- Activision Blizzard: Unlocking The Power Of Entertainment
- Microsoft Troubles Open Activision Investors To An Attractive Opportunity
- ATVI Could Be An Arbitrage Play With Or Without The Microsoft Deal
For further details see:
Activision downgraded at Raymond James as Microsoft deal likely to close soon