ADVERTISEMENT

market

Activision shares fall after report watchdog will try to block $69 billion Microsoft deal

ADVERTISEMENT

  • Activision shares fell 4% in afterhours trading on Wednesday.
  • According to Politico, the Federal Trade Commission is filing an antitrust suit to block Microsoft’s acquisition of the company.
  • Microsoft agreed to buy Actvision in January for $69 billion.

Shares of Activision Blizzard fell after close on Wednesday after a report suggested regulators would try to block Microsoft’s $69 billion deal to buy the video game publisher.

Activision dropped to 5.9% after the closing bell and fell 3.9% to trade at $73.60 at last check. The US stock markets are closed on Thursday for Thanksgiving.

The Federal Trade Commission could try to block Microsoft’s $69 billion deal to buy Activision through an antitrust suit, Politico reported Wednesday, citing three people with knowledge of the matter.

The regulator is said to believe that the acquisition of ‘Call of Duty’ publisher Activision would give Microsoft and its flagship Xbox console an unfair advantage in the video game market.

The FTC did not immediately respond to Insider’s request for comment.

A potential antitrust lawsuit could be bad news for those who bought Activision stock after Microsoft announced an acquisition deal in January, including veteran investor Warren Buffett.

In the first quarter of this year, Buffett more than quadrupled Berkshire Hathaway’s stake in Activision to 64 million shares, betting that Microsoft would complete its acquisition of the video game company.

Berkshire still owned 60.1 million shares, or 7.7%, of Activision at the end of the third quarter, a stake worth $4.6 billion as of Wednesday’s end.

Microsoft shares rose 0.4% to $248.46 after the closing bell.

Also read  Apple users report serious iCloud problem, files corrupted, strangers add photos

Read more: Warren Buffett says his team didn’t know Microsoft planned to buy Activision Blizzard when they bought gaming stock

Source: markets.businessinsider.com

ADVERTISEMENT

ADVERTISEMENT

Leave a Comment