For economic experts, Microsoft’s acquisition of Activision Blizzard seemed unlikely. Microsoft has previously promised to invest $95 for every stock of the firm, as reported by Reuters, as part of the agreement that was revealed initially this year. With a stock value of roughly $82 at the moment, investing in Activision-Blizzard now would net you a massive gain of $13 for every stake, regardless of whether or not the merger comes ahead.
Activision Shares Are Constantly Taking a Nose-Dive
In spite of what may seem to be an inevitable victory, the industry’s share price has steadily declined over the previous several weeks and currently stands at $76.51 at this point of publishing. When more capital is thrown away, it signals that Wall Street traders do not even believe the transaction will get completed, which might halt the $95 payment for those shareholders.
On today’s agenda, the council of directors of the Call of Duty Developer would deliberate on whether or not to approve the merger (Bobby Kotick’s fate will likewise be decided by a confused panel.). Since it’s widely expected that the company would support the transaction, the Federal Trade Committee’s new regulatory authorities imply that the acquisition might be rejected because of these worries. Even if the FTC has trouble proving Microsoft’s market dominance, as Cnn argues, there’s certainly cause for worry.
This is by far the biggest gaming industry merger in history, but things haven’t gone completely according to plan. There are also probes into suspected market manipulation as well as the former’s litigation still pending, which have drawn unwanted exposure to the corporations engaged in these deals.
Even when Activision’s creators go to Xbox, the blockbuster Call of Duty series is anticipated to stay accessible on Ps.