Why Activision Blizzard Shares Are Trading Higher Today

·1 分鐘文章
  • Activision Blizzard, Inc (NASDAQ: ATVI) shares gained 6% after the U.K. antitrust regulator capped its concerns regarding the Microsoft Corp (NASDAQ: MSFT) deal.

  • On Friday, the Competition and Markets Authority issued updated provisional findings in its assessment of Microsoft's proposed acquisition of Activision, narrowing its scope of concerns.

  • The CMA's new evidence provisionally alleviates concerns concerning the supply of gaming consoles in the U.K.

  • In February, the CMA flagged competition concerns concerning console gaming and cloud gaming services in the U.K.

  • The most significant new evidence relates to Microsoft's financial incentives to make Activision's games, including Call of Duty (CoD), exclusive to its consoles.

  • The updated analysis shows that it would not be commercially beneficial to Microsoft to make CoD exclusive to Xbox after the deal.

  • Microsoft will still gain to continue making the game available on Sony Group Corp (NYSE: SONY) PlayStation.

  • However, the regulatory investigation continues, with a final report due by April 26, 2023.

  • Recently Microsoft cut decade-long deals with Nvidia Corp (NASDAQ: NVDA) and Nintendo Co, Ltd (OTC: NTDOF) (OTC: NTDOY) to win over opposition against its Activision deal.

  • Price Action: ATVI shares traded higher by 6.10% at $84.54 on the last check Friday.

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This article Why Activision Blizzard Shares Are Trading Higher Today originally appeared on Benzinga.com


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