TTWO - Why Take-Two Interactive Stock Crumbled by 4% Today
2023-04-26 19:20:00 ET
Wednesday will not go down as a great day in video game industry history. Take-Two Interactive (NASDAQ: TTWO) fell by over 4% in value, due in no small part to a regulatory decision across the Atlantic Ocean that directly impacted a big peer. Take-Two's fall was steeper than that of the S&P 500 index on the day, which slipped by a relatively light 0.4%.
The big peer is Activision Blizzard (NASDAQ: ATVI) , the buyout target of 300-pound tech-sector gorilla Microsoft (NASDAQ: MSFT) . On Wednesday, the U.K.'s Competition and Markets Authority (CMA) blocked the mega-merger "over concerns the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for U.K. gamers over the years to come."
Both Microsoft, which is itching to get its hands on a prominent video game publisher and developer, and eager-for-a-premium-buyout Activision said they would contest the decision. It isn't easy to fight the ruling of a strong and determined regulator, however, and Microsoft has a spotty history with such efforts.
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Why Take-Two Interactive Stock Crumbled by 4% Today