ATVI - U.K. Says Game Over to Microsoft-Activision Deal: Is This Your Chance to Buy the Game Maker's Stock?
2023-04-26 16:24:53 ET
The mergers and acquisitions field is an exciting one, but it's also fraught with uncertainty and risk. Investors always have to be aware of the risk that a promising deal might not go through. And until the two parties close, there's always a chance that something might arise that could put a stop to an acquisition and cause substantial financial damage to those who were counting on it happening.
For well over a year now, many investors in Activision Blizzard (NASDAQ: ATVI) have waited to see if the video game giant would see Microsoft 's (NASDAQ: MSFT) acquisition move forward. Ups and downs in Activision's stock during 2022 and early 2023 reflected changing levels of doubt about whether the two companies would get a deal done. Unfortunately for those who had hoped for a combination, it now appears that Activision might have to go it alone. But for those who had been disappointed at the prospects of not getting to invest in the video game pioneer's future, the latest news could be a positive.
Regulators in the U.K. weighed in on the competitive impacts of Microsoft's acquisition of Activision, and they weren't happy with what they saw. The Competition and Markets Authority (CMA) said that it believed that the combination would reduce the level of innovation in the video gaming industry , and it could potentially reduce the amount of choice available to gamers, particularly in the cloud gaming niche.
For further details see:
U.K. Says Game Over to Microsoft-Activision Deal: Is This Your Chance to Buy the Game Maker's Stock?