Today’s decision by the UK’s Competition and Markets Authority to block Microsoft’s proposed purchase of Activision Blizzard didn’t hurt Microsoft’s stock price today. The same cannot be said for Activision Blizzard’s trade value.
As of this writing, Microsoft’s stock price (via CNBC) It is at a 52-week high, up nearly 7 percent from Tuesday. Investors shrugged off today’s CMA decision, and appear to be focusing more on Microsoft’s latest solid financial numbers for its Q3 2023 fiscal quarter. The company beat estimates for the quarter, as it recorded revenue of $52.9 billion.
In contrast, Activision Blizzard’s stock price is suffering at the moment. As of this writing, the price was Trading down about 9%.
The UK’s CMA has ruled that the proposed $69 billion purchase of Microsoft by Activision Blizzard will stifle competition in the small but growing cloud gaming market. Although Microsoft has agreements with several cloud gaming companies to give them access to Microsoft and Activision Blizzard’s games, the CMA found that Microsoft “has a substantial range of different cloud gaming service business models, including multi-game subscription services.” Not covered.”
Microsoft has already said it will appeal the CMA’s decision to block the purchase. This means it must take its case to the UK’s Competition Appeal Tribunal. Eurogamer According to the report, the hearing of the appeal by the tribunal may take at least several months. Even if Microsoft overturns the CMA’s decision, that means it will go to the CMA again for another review before making another decision.
