Activision Blizzard (NASDAQ:ATVI) stock is losing ground on Wednesday as a regulator in the U.K. steps in to block its deal with Microsoft (NASDAQ:MSFT).
The U.K.’s Competition and Markets Authority (CMA) is standing in the way of the acquisition deal due to concerns over cloud gaming. The regulators believe allowing the deal to go through would hinder competition in the cloud gaming sector.
Martin Coleman, CMA’s panel chair, said the following in a statement obtained by Reuters:
“Cloud gaming is growing fast with the potential to change gaming by altering the way games are played, freeing people from the need to rely on expensive consoles and gaming PCs and giving them more choice over how and where they play games. This means that it is vital that we protect competition in this emerging and exciting market.”
Activision Blizzard and Microsoft have both expressed disappointment in the regulator’s stance. Both are also working to move forward with the deal. That includes Activision Blizzard CEO Bobby Kotick saying this “is far from the final word on this deal.”
The Future of the ATVI Stock Deal
Even so, things aren’t looking good for the deal between Activision Blizzard and Microsoft. Aaron Glick, a merger arbitrage strategist at TD Cowen, notes that there has never been a successful appeal to an antitrust concern in the U.K. This has Glick believing the regulator’s actions are an end to the deal.
With today’s news, shares of ATVI stock are down 9.2%. However, MSFT stock is climbing 7.1% higher as of Wednesday morning.
Investors looking for more of the most recent stock market news will want to stick around!
We’ve got all of the latest stock market news traders need to know about on Wednesday! A few examples include why shares of Fisker (NYSE:FSR), Enphase Energy (NASDAQ:ENPH), and Bed Bath & Beyond (NASDAQ:BBBY) stock are moving today. All of that is ready to go at the links below!
More Wednesday Stock Market News
- Dear FSR Stock Fans, Mark Your Calendars for May 5
- Why Is Enphase Energy (ENPH) Stock Down 19% Today?
- Why Is Bed Bath & Beyond (BBBY) Stock Down 24% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
