There may be a newfound skepticism that the acquisition of Activision Blizzard from Microsoft will be successful, based on the signals from Wall Street. This comes in the midst of a prediction that US President Joe Biden’s antitrust law enforcement could derail the pending deal.
Activision Blizzard faced a tough time with Call of Duty’s lower revenue and declining sales, with the loss of 60 million players in one year potentially reducing investor confidence in the company.
There is also the matter of the Federal Trade Commission acting as an obstacle to the acquisition of Microsoft. Additionally, some activist investor groups are asking shareholders to vote against the deal, in part due to a potential golden parachute for Activision CEO Bobby Kotick, who is expected to leave the company after Microsoft takes over. reins.
Wedbush Securities analyst Michael Pachter is more positive about the outcome of Microsoft’s acquisition of Activision Blizzard and explained that even if the FTC initiates a lawsuit, it will have a hard time defining the concentrated market problem that the merger could. to cause.
Source: Bloomberg
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