Activision Blizzard Analyst Sees Its Deal With Microsoft Happening

Benzinga -

• Wedbush analyst Nick McKay assumed coverage on Activision Blizzard Inc (NASDAQ: ATVI) with an Outperform rating and a price target of $95.
• The analyst expects Microsoft Corp (NASDAQ: MSFT) to close its proposed acquisition of Activision Blizzard over the next several months.
• At a high level, Microsoft must maintain the status quo within the video game industry through legally binding agreements that address game availability, pricing, quality, and release timing.
• Once the company has entered into such agreements, regulatory concerns around the potential for lessening competition should largely subside, paving the way for the deal's completion in relatively short order.
• There appears to be less concern from the investors whom the analyst spoke with about the implications of the deal falling apart for Activision Blizzard's share price.
• The analyst attribute that it has moved past the pandemic-related slowdown to development faster than its primary peers, as reflected in the high quality and intense performances of its FY22 releases and the significant potential of its FY23 releases.
• The shares remain part of the Wedbush Securities Investment Committee's Best Ideas List.
• In January, Alphabet Inc's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Nvidia Corp (NASDAQ: NVDA) joined Sony Group Corp (NYSE: SONY) in raising issues with the $69 billion deal, which the FTC opposed in December.
• The FTC argued that the deal would impede competition in the video game industry and has scheduled an in-house trial for August.
• Sony, whose PlayStation console competes with Microsoft's Xbox, has previously argued that it sees the Activision deal as anti-competitive.
• Price Action: ATVI shares traded higher by 0.20% at $76.76 on the last check Friday.

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga