Microsoft Corp. (NASDAQ: MSFT) crosses a huge hurdle barring the tech giant to acquire video game company Activision Blizzard (NASDAQ: ATVI). The whopping $69 Billion deal is stuck under regulatory scrutiny in the United States and the United Kingdom. The United States Financial Trade Commission (FTC) sued Microsoft last year and asked for court intervention in the Activision buying deal. The decision is in favor of the software company.
Following the approval from U.S. District Judge Jacqueline Scott Corley, Microsoft is allowed to close the deal to acquire the Call of Duty creator, Activision Blizzard. The deal incurring $69 Billion would be the biggest deal for the software company to date. The amount would be the largest transaction in the entire history of the gaming industry, Reuters reported. ATVI stock price jumped 10% in the intraday trading session following the news.
The U.S. regulator FTC requested a preliminary injunction but Judge Corely denied it.
According to the reports, the regulator had concerns that the Microsoft-Activision deal would have a huge impact on other players in the market including Sony Group and Nintendo. It argued that following the agreement, the competition in console gaming, subscriptions, and mobile gaming would get depleted.
The United Kingdom Competition and Markets Authority (CMA) also had concerns with the Activision Blizzard acquisition deal. However, soon after the court order in the U.S., the U.K. authority reported to soften its take on the case. The CMA said to consider a proposal from Microsoft to “resolve antitrust concerns.” This indicates a resolution down the road.
Activision Blizzard (ATVI) Stock Price Movement
In the aftermath of optimism following the update on the acquisition deal, ATVI stock price saw a straight rise of 10% within a day. Breaking the 52-week range, the stock price attained a new high at $92 on Wednesday, July 12, 2023, before settling down to $90.
ATVI stock made efforts for an up move earlier this year but could not accomplish it completely. In March end, the stock price entered a gap zone where the price jumped from $81 to $86. However, it could not sustain for long, and with the earnings announcement in May 2023, Activision Blizzard stock fell below $80.
In the following days, Activision stock tested the low at $74 in May 2023, before entering the gap zone price range and this time successfully broke within the wake of the recent abnormal rise. ATVI stock price is likely to consolidate sideways until any significant move until the next earnings call.
The MACD indicator showcases a positive crossover while RSI stands at 73 indicating ATVI stock entering the overbought zone due to which a short-term retracement could be seen. Even in case of a fall in stock price, it could take immediate support at $80 while strong base support is at $74.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/13/activision-blizzard-69b-acquisition-deal-is-on-atvi-stock-rose-10/