ATVI Stock Alert: U.K. Regulator Blocks Microsoft-Activision Deal


  • Activision Blizzard (ATVI) stock is slipping as a U.K. regulator blocks its deal with Microsoft (MSFT).
  • This would keep Microsoft from acquiring the video game developer and publisher.
  • This could spell the end of the deal between the two gaming companies.
ATVI Stock - ATVI Stock Alert: U.K. Regulator Blocks Microsoft-Activision Deal

Source: Sergei Elagin /

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.

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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 Publishing Guidelines.

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