Microsoft likely to get the OK for $69B takeover of Activision Blizzard from UK regulators: Wedbush By Proactive Investors
Proactive Investors – The UK is expected to approve a watershed deal between Microsoft (NASDAQ:MSFT) and Activision Blizzard (NASDAQ:ATVI) this week—at least, that is the prevailing analyst view.
The final report from the UK’s Competition and Markets Authority about Microsoft’s $68.7 billion takeover of the games maker is due by Wednesday.
“We expect the CMA to approve the transaction in return for Microsoft committing to certain behavioral remedies that help to govern its practices around cloud gaming,” Wedbush analysts wrote in a note.
According to Wedbush, Microsoft has been “proactive” in addressing cloud gaming concerns through several content deals with competitors in the space.
“Once the UK and EU have approved the transaction, we expect the Federal Trade Commission in the US to follow suit,” analysts wrote.
“We remain confident that the deal will get completed on time, within Microsoft’s fiscal year ending June 30, 2023.”
Wedbush is maintaining an ‘Outperform’ rating and a 12-month price target of $95 on Activision’s shares.
Activision is due to report its first quarter 2023 results later this week.
Analysts at Wedbush are expecting net bookings, operating income, and earnings per share to come in at $1.75 billion, $482 million, and $0.55 respectively, with the consensus at $1.79 billion, $442 million, and $0.51.
Read more on Proactive Investors UK
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