- Activision Blizzard, Inc (NASDAQ:ATVI) shares tumbled on Wednesday after the U.K. competition regulator objected to the Microsoft Corp (NASDAQ:MSFT)- Activision deal.
- The Competition and Markets Authority opposed Microsoft’s proposed purchase of Activision over concerns that the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and fewer choices for U.K. gamers over the years to come.
- The final decision to prevent the deal comes after Microsoft’s solution failed to address the concerns in the cloud gaming sector effectively.
- Microsoft entered into a $68.7 billion deal to buy ‘Call of Duty’ creator Activision, one of the world’s most popular video game publishers, in January 2022.
- The CMA launched an in-depth review of the deal in September 2022. In February 2023, the CMA provisionally found that the merger could strengthen Microsoft in cloud gaming, stifling competition in this growing market.
- Activision proposes to work aggressively with Microsoft to reverse the decision on this appeal.
- Price Action: ATVI shares traded lower by 11.20% at $77.00 premarket on the last check Wednesday.
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