It’s been six months since Microsoft announced its intention to buy Activision Blizzard to become another member publisher of Xbox Game Studios. However, as it is a large acquisition, after all we are talking about 70 billion dollars, there are still a few months left for the regulatory bodies to approve or deny.
Now the Seeking Alphaa site formed by stock market specialists, recommending the purchase of Activison Blizzard that would be selling at 22% of market value. That way, whoever buys such shares will be able to sell them more expensively if the deal is approved and Microsoft actually becomes the owner.
The report’s conclusion reads as follows:
Activision shares represent an attractive opportunity as buyers would earn 30% in approximately 13 months. There are few risks in this scenarioas Microsoft has the money and the deal would likely face little regulatory resistance. Regulators will consider the impact the merger would have on gaming competition, but Microsoft’s small size relative to competitors means that the purchase intensifies the competition instead of eliminating it. The 2020 Vertical Merger Guidelines also indicate that regulators will look at how consumer data can be used, and Microsoft has already signaled that it is ready to find a solution that will please regulators to get the deal done.
Also, so far all of Microsoft’s purchases have been approved by regulatory bodies, so there really is a chance that everything will go well until the end of the investigative process. Remembering that Tecent and Sony are in the lead in this market, so for Seeking Alpha it is even more interesting for the market that Microsoft gets stronger to compete even more with them.
Now we have to wait until June 2023, the deadline for knowing the end of this story. Until then, follow the Windows Club that we are always on the lookout for.