No Deal – Update on the Microsoft-Activision Deal ❌

No Deal – Update on the Microsoft-Activision Deal

One of the hottest regulatory debates underway in the world is Microsoft’s attempt to acquire Activision Blizzard, which would go down as one of the largest deals in history. Activision is a video game developer you are likely familiar with considering their collection includes the Call of Duty series, World of Warcraft, and even Candy Crush. The popularity of these games is well reflected in the company’s market cap, which sits at $60.635 billion as of last night.

The purchase was seen to tickle the feathers of regulatory agencies across the world, with the Federal Trade Commission filing a lawsuit against the company and British regulators reviewing the deal to approve or deny it. Microsoft attempted to negotiate with regulators regarding concerns they had about the deal, but the UK might have dealt a fatal blow on Wednesday.

The Competition and Markets Authority rejected the deal, citing that it would hurt competition in the industry in the UK, which has been the prime concern for a while. With the acquisition of Activision, Microsoft now has the rights to the entire library, meaning they can perform moves like making Activision games exclusive to their XBOX console to cut off competitors. Antitrust lawyers believe that an appeal will likely fail and has a high bar to be overturned, meaning that this deal will likely not fall through. This is furthered by the fact that Britain’s decision now bolsters the effort in the United States from the FTC to block the deal, and Big Tech as a whole loses from this ordeal as the regulatory hammer is being slammed now.

As for the two companies involved, Activision will receive a $3 billion breakup fee if the deal ends up failing, and analysts believe that the company would look to become a buyer as they continue to report good results and expand their catalog. For Microsoft, it would mark another failed effort from their end to expand their presence in the cloud gaming area, where there is a lot of potential.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.