In the event that the Federal Trade Commission files a complaint to halt Microsoft’s (NASDAQ:MSFT) $69 billion acquisition of the videogame developer, Activision Blizzard (NASDAQ:ATVI) shares could experience a very minor decline.
According to a Seeking Alpha poll of 14 experts and traders who track mergers and acquisitions, Activision stock (NASDAQ:ATVI) shares might tumble to $71 per share in a potential lawsuit. A 5% decrease from its current price would be represented by the drop to $71. The range of poll responses was from $65 to $75 per share. All of the survey participants predicted that Microsoft (MSFT) would challenge the decision in court.
The survey is being done as the Federal Trade Commission gets ready to meet behind closed doors on Thursday at 11 a.m. to talk about the Activision/Microsoft merger, according to the New York Post. The FTC commissioners might theoretically vote on the transaction, according to the report.
Since these meetings are typically held behind closed doors and deal with private businesses or other topics, it is impossible to independently confirm whether the FTC meeting is regarding the Activision (ATVI) deal.
On Wednesday, it is said that Brad Smith, the president of Microsoft (NASDAQ:MSFT), met with three Democratic FTC commissioners to make his case. Microsoft (MSFT) has recently been attempting to persuade antitrust regulators to accept the merger. On Monday, Smith also published an opinion article in the Wall Street Journal, where he stated that Microsoft (MSFT) was giving rival Sony (SONY) a 10-year guarantee for same-day Call of Duty delivery.
The Microsoft bid to acquire Sony is unlikely to be approved, according to a DealReporter article published on Wednesday. Reports say that Sony (SONY) and Microsoft (NASDAQ:MSFT) are “nowhere near” (MSFT) making a deal.
Activision Stock Outlook
Bloomberg reported on Friday that Microsoft (NASDAQ:MSFT) is preparing to appear in court should the FTC decide to pursue a lawsuit. The $95 per share offer from Activision is being closely looked at in both Europe and the UK. This means that MSFT might not just have to defend it in the US.
After Politico reported late last month that the antitrust authority was likely to sue to prevent the mega-deal, investors may have an idea of the potential loss in an FTC complaint. Following the Politico article, Activision stock decreased 4% on November 25.
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