Activision Stock (NASDAQ:ATVI)
Activision Blizzard (NASDAQ:ATVI) stock ticked slightly during premarket trading on Tuesday after the Japan Fair Trade Commission stated that Microsoft proposed $69 billion acquisition of the company does not limit competition in the market for videogame console manufacturers. As a result, Activision stock popped.
According to a statement translated by the Japan Fair Trade Commission, the transaction will not “seriously impede competition.” As a result, both firms have been informed that a stop and desist order will not be issued, and the investigation has been concluded.
The statement made by the JFTC comes only a few days after the antitrust authority in the United Kingdom “provisionally decided” that the planned transaction would not diminish competition in the market for console gaming consoles.
Activision’s stock price increased due to unexpected news from the Competition and Markets Authority. Also, the price differential between Activision and Microsoft’s suggested offering of $95 per share in cash shrunk.
Despite this, when it made its statement last week, the CMA did not specify whether or not the purchase would affect the cloud gaming sector. On the 26th of April, the CMA is expected to provide its conclusive findings on the subject.
The merger between Microsoft and Activision has been subjected to rigorous investigation worldwide, notably by the Federal Trade Commission in the United States.
In October, Brazil gave its go-ahead for the purchase. In November, game creators in China were said to have approved the business arrangement. According to a prior report from Seeking Alpha, a third party in China stated their concerns over the sale.
Since Microsoft is willing to license video games to companies that compete with it, this transaction now has a better chance of being approved by the European Union.
Microsoft has secured partnerships with Nintendo (OTCPK:NTDOY) and Nvidia to bring games on their respective platforms, including Call of Duty. These deals will allow more than 150 million new gamers to participate in the popular game.
The only company that has yet to agree to the transaction terms is Sony of Japan, which has voiced its opposition on many occasions.
With the unexpected statement made by the CMA, Citi increased its chances to 70% that the Microsoft-Activision deal would be finalized last week.
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