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Activision Blizzard Might Not Need Microsoft. Just Look at 'Diablo IV' Sales. - Barron's

1. Microsoft's $69 billion Activision deal faces regulatory hurdles in the U.S. and U.K. 2. Activision's Diablo IV sold $666 million in five days, a record for Blizzard. 3. Wedbush analysts raised Activision's revenue estimates after strong Diablo IV performance. 4. FTC seeks to block Microsoft's acquisition, but analysts are optimistic about the deal. 5. Concerns about cloud gaming competition due to Call of Duty remain.

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FAQ

Why Neutral?

The uncertainty surrounding the Activision deal tempers immediate MSFT stock movements. Historical examples, like the failed acquisition of Time Warner by AT&T, show regulatory scrutiny can stall deals.

How important is it?

The article discusses regulatory challenges that will directly affect MSFT’s financial movements concerning the Activision deal, impacting investor sentiment.

Why Short Term?

Deal's regulatory scrutiny could lead to volatility in MSFT's stock in the near term but long-term prospects remain intact, similar to Microsoft’s past acquisitions which ultimately succeeded post-regulatory challenges.

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