SONY - Why Microsoft Stock Dropped Today
Shares of Microsoft (NASDAQ: MSFT) fell 2.3% on Monday following reports of increased antitrust scrutiny.
The Federal Trade Commission (FTC) may move to block Microsoft's $69 billion acquisition of video game maker Activision Blizzard (NASDAQ: ATVI) , according to a report published by Politico after the market close on Wednesday. Regulators are reportedly skeptical of the two companies' claims that the deal will not dampen competition in the nearly $200 billion gaming market. The FTC could bring an antitrust lawsuit against Microsoft as soon as December.
The tech titan's rivals could spur regulators to act. Sony (NYSE: SONY) notes that by acquiring Activision, Microsoft would gain control over popular game franchises like Call of Duty . It could then choose to make these and other games exclusive to its Xbox console, thereby removing key sales drivers for Sony's PlayStation console. In turn, Sony argues that the acquisition deal "would cause significant harm to consumers, competition, and developers."
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Why Microsoft Stock Dropped Today