Microsoft and Activision: Analysts suggest the deal could be canceled

Market analysts on Wall Street, the traditional financial center of the United States, believe that the Microsoft’s purchase of Activision Blizzard may not prosper.

Experts suggest that the deal could end up bumping into antitrust laws (which serve to stop brand mergers that end up cannibalizing a sector of the economy).

The information was released this Thursday (28) by the Bloomberg, who listened to financial market sources. The expectation is that even if the deal goes ahead, it should at least delay, which would prevent the conclusion of the agreement in 2023 (as predicted).

Matt Perault of New Street Research explained that President Joe Biden has spoken out strongly against trusts and that, in addition, the acquisition of the owner of the Xbox also needs approval from legislators in China and the European Union.

Microsoft

Betty Chan, an expert at Elevation LLC, commented that the deal was expected to be approved by Activision Blizzard shareholders, as it actually did today. However, the concern is that Lina Khan, who heads the Federal Trade Commission (FTC), an agency that monitors antitrust laws, will not approve the deal.

Under Khan, the FTC has already blocked the acquisition of Arm Ltd., by NVIDIA, and Aerojet Rocketdyne Holdings (aerospace company), by Lockheed Martin Corp.

Another factor cited by experts is that the developer’s shares are currently being traded for values ​​25% below the US$ 95 (about R$ 472 at the current price) that Microsoft promises to pay shareholders.

the optimist

Although some analysts are more skeptical, there are others who do not believe that the purchase of Activision Blizzard will be consecrated. Michael Pachter of Wedbush Securities says the odds of filing a lawsuit to stop the story are 10%. He says that even if the FTC takes the case to court, the chance of the entity winning is 0%.

He argues that, even with the purchase, Microsoft would not have such a large share in the video game market to the point of dominating the industry: “The agency [FTC] can’t win this one [caso] – so if they can’t win, they won’t sue.”

Microsoft

About Raju Singh

Raju has an exquisite taste. For him, video games are more than entertainment and he likes to discuss forms and art.

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