Microsoft Stock (NASDAQ:MSFT)
Microsoft stock surged as Chief Executive Officer Satya Nadella is optimistic that the $69 billion purchase of Activision Blizzard would be authorized, even though regulators in the United Kingdom are continuing to investigate the planned acquisition of Activision Blizzard (ATVI).
In an interview with Bloomberg, Nadella stated that he was “very, very certain that we’ll come out” with a successful acquisition, even though purchases of the magnitude of Microsoft (NASDAQ:MSFT) would always attract a fair bit of regulatory scrutiny. Despite this, he stated that he was “very, very confident that we’ll come out” with a successful acquisition.
Microsoft (NASDAQ:MSFT) had stated in an earlier announcement that the acquisition of Activision would take place on January 18 and that the deal’s closing may take up to a year. It is Microsoft’s (MSFT) biggest purchase in company history. Investors are, therefore, closely monitoring the Microsoft stock.
According to an interview that Nadella gave to Bloomberg, Microsoft (NASDAQ:MSFT) is the fourth or fifth largest competitor in the video game industry. In addition, Nadella mentioned that because the leading participant, Sony (SONY), has recently completed multiple mergers and acquisitions, Microsoft stock ought to be granted the go-ahead for its proposed acquisition of Activision (ATVI).
Nadella stated, “So if this is about competitiveness, let us have competition.”
If Microsoft (NASDAQ:MSFT) successfully purchases Activision (ATVI), it will be able to integrate several well-known video game franchises under its umbrella, including Call of Duty, World of Warcraft, and Guitar Hero.
The Competition and Markets Authority in the United Kingdom started a long-term review of Microsoft’s (NASDAQ:MSFT) deal to acquire Activision (ATVI) at the beginning of September because it could reduce competition in areas such as game consoles, cloud-based gaming, and gaming subscriptions. This is one of the reasons why the review was started. Right now, Microsoft stock is going high as a result.
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