Why Activision Blizzard Shares Are Trading Higher Today
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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