MSFT - Why Activision Blizzard Stock Fell Today
Despite a day of gains for the broader market, Activision Blizzard stock (NASDAQ: ATVI) dipped in today's trading. The gaming publisher's share price fell roughly 1.5% on news that the Federal Trade Commission (FTC) will be challenging Microsoft 's (NASDAQ: MSFT) buyout of the company in court. Meanwhile, the S&P 500 , Nasdaq Composite , and Dow Jones Industrial Average indexes closed out the daily session up roughly 0.8%, 1.1%, and 0.6%, respectively.
In its recently published complaint against the proposed $68.7 billion buyout, the FTC alleged that allowing the deal to go through would hurt the competitive landscape in the video game industry and enable Microsoft to stifle its rivals in the space.The agency has filed a suit to block the deal in an administrative court, and developments on the regulatory front will likely continue to shape Activision Blizzard's stock performance in the near term.
Activision Blizzard's valuation popped at the beginning of the year after Microsoft announced that it had agreed to buy the publisher for $95 per share. However, its stock has remained well below that level as the market has weighed the risks that the deal would be blocked by regulators.
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Why Activision Blizzard Stock Fell Today