Microsoftis now closer than ever to completing its landmark acquisition of Activision Blizzard and its many studios and IP, at least according to financial insiders. This massive buyout was one ofthe biggest gaming storiesto come out over the past couple of years, as it means that major franchises likeCall of Duty,World of Warcraft, andOverwatchwould be brought into Microsoft’s Xbox umbrella should the deal successfully clear. This planned buyout follows Xbox’s purchase of Bethesda’s parent company ZeniMax Media – and with it ownership of franchises likeElder ScrollsandFallout– in 2020.
Not everyone has been on board with the idea ofMicrosoft acquiring yet another mega-publisherin the form of Activision Blizzard, and there have been several challenges to the deal by competitors and government bodies alike. The loudest opposition to the buyout has been Sony, who claims that the Activision Blizzard buyout would cost PlayStation access to the highly lucrativeCall of Dutyfranchise if it carries through. Microsoft has argued that this won’t be the case, and several smaller game studios have voiced their support for the deal.
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In light of theUK’s Competition and Markets Authority’s recent findingsregarding Microsoft’s planned purchase of Activision Blizzard, experts are saying that the chances of the deal closing soon are higher than ever. Citi recently raised the probability of Microsoft completing its purchase of Activision Blizzard from 50% to 70%, as noted by analyst Jason Bazinet (via Seeking Alpha). Citi also raised Activision’s stock price target from $88 to $91 to reflect this increased likelihood, which Bazinet explained as Activision being “a very low-cost call option on the Microsoft transaction gaining approval.”
Bazinet also stated that investors will raise this probability even higher if theActivision Blizzard buyout gains approval in the EU, UK, and US. Late last week, the CMA brought the deal a step closer to this goal by assuring investors that it “would not result in a substantial lessening of competition in relation to console gaming.” The regulatory agency is set to give its final verdict on the purchase by April 26, and the European Union will give its own ruling sometime in May.
Microsoft’s buyout of Activision Blizzard could change the gaming industry in profound ways if it gains approval from the many regulatory bodies around the world, and it seems like it is now more likely than ever to be completed. With the deal now starting to clear past these many hurdles, experts now think that it is a matter of “when”Microsoft’s planned acquisition of Activision Blizzard will be finalized rather than “if” – though only time will tell how the process plays out from here.
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