A new step has been taken in the long road that separates Microsoft from the final takeover of Activision Blizzard. Indeed, if the transaction will not be ratified for several months, the shareholders had to give their agreement this week.
Last January, Microsoft formalized its intention to buy Activision Blizzard and all of its studios by paying 68,7 billion dollars. However, many "details" still need to be settled and the takeover should not take effect until around the summer of 2023. Recently, a new encouraging (but predictable) signal has been issued in favor of this record acquisition.
A proven risk of blockage?
This Thursday, April 28, 2022, shareholders overwhelmingly approved (more than 98%) the takeover of Activision Blizzard by Microsoft. The vote states that one share will be worth $95 once the acquisition is confirmed. But as Bloomberg reporter Jason Schreier points out, the results aren't surprising since both companies were expecting broad approval. However, this "success" does not in any way indicate that the takeover is now certain to succeed. So much so that an uncertainty is even palpable…
Currently, a share of Activision Blizzard is priced at $76, down 6,82% since January. According to Schreier, this sizeable pullback suggests that shareholders believe the deal could fall through. This uncertainty is due to the FTC, the independent American federal commission which ensures the application of the right to consumption while controlling anti-competitive practices. Last year, Lina Khan was named head of the organization and she plans to vigorously pursue antitrust cases in the technology area. Thus, the takeover of Activision Blizzard by Microsoft is in its sights according to Bloomberg.
On the same subject :
Xbox and Activision Blizzard: the deal is far from over
