Activision Blizzard shares rise after CMA decision

Activision Blizzard shares are up more than 5% following news that the CMA is no longer concerned that the company’s purchase could affect the console market.

The Competition and Markets Authority (CMA) no longer has any reservations about Microsoft’s purchase of Activision Blizzard. After this news, the British regulator will likely approve the purchase at the end of April. Due to this news, Activision Blizzard’s share price has increased more than 5% and reached its highest level since January 2022.

The market regains confidence in Activision Blizzard’s purchase by Microsoft

Activision Blizzard shares have rallied since the CMA updated its preliminary findings. Before the CMA released this update, the company’s stock price was below $79; however, with this news, the stock is now above $84. It is important to note that Activision Blizzard’s stock has not reached such a high point since 2021.

This rise in the stock implies that the market is regaining confidence that the deal will go ahead, despite all the obstacles. With this in mind, Microsoft is happy about this growth in the stock. If we recall, Microsoft’s expected purchase price is $95 per share.

Although it may not seem like it, stock price matters greatly in the video game industry; this increase in shares reinforces the confidence about this acquisition.

Response from Activision and Microsoft

Activision Blizzard and Microsoft have welcomed the change of position of the CMA, as expected. Thus, a Microsoft representative has expressed satisfaction with the modification.

The company employee comments they are very happy with the rigorous review and welcome the tentative conclusions. Moreover, he adds that more players will have more options thanks to this agreement when playing Call of Duty and other titles they like. On the other hand, he comments that they are attentive to collaborating with the CMA to address and resolve any unresolved questions.

Then an Activision Blizzard representative states that the CMA’s initial findings show a greater understanding of the console gaming business; they also reflect a commitment to supporting gamers and competition.

On the other hand, he comments that Sony’s attempt to defend its dominant position by opposing the merger cannot overcome the facts, as Microsoft has presented appropriate and applicable solutions to address each of the CMA’s concerns.

Finally, Activision’s Lulu Cheng commented that the deal would help innovation, competition, and UK consumers.

At this time, Sony has not commented on the CMA’s updated preliminary findings. The CMA’s final ruling will be announced on April 26.

Header: Activision Blizzard