Activision gains again, up 11% as UK looks to pause trial over Microsoft purchase (updated)
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Activision Blizzard (NASDAQ:ATVI) is finding another leg higher as news of a court win over the FTC was followed by signs of a peaceful regulatory resolution in the United Kingdom of its proposed acquisition by Microsoft (NASDAQ:MSFT).
The stock had gotten a 5% lift in the past hour as a court ruled against the Federal Trade Commission's request for a preliminary injunction against the $69B deal.
Now Activision Blizzard (ATVI) has risen 11% on news that the company, its proposed acquirer Microsoft (MSFT), and UK regular the Competition and Markets Authority have jointly asked the Competition Appeal Tribunal to pause litigation in the kingdom.
That litigation was headed for a July 28 trial. Following the court ruling for the companies in the U.S., the UK was seen as a key remaining hurdle for the deal.
With the additional move higher, Activision Blizzard (ATVI) hit a session high of $92, just a 3.2% discount from Microsoft's proposed $95/share price.
The CMA says it "stands ready" to consider any proposals from Microsoft to restructure its deal in a way that assuages its concerns, Bloomberg reported.
Microsoft President Brad Smith highlighted that the attention is now overseas: "After today's court decision in the U.S., our focus now turns back to the UK. While we ultimately disagree with the CMA's concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA," he said.
"In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect," he said.
Updated: Key videogaming stocks moved higher in the wake of the twin Microsoft/Activision deal headlines. Big-Three publishing rivals Electronic Arts (EA) +5.8%; Take-Two Interactive Software (TTWO) +3.1%. Roblox (RBLX) was +7.7%, Skillz (SKLZ) +18.1%, and overseas peers were also up: NetEase (NTES) +1.5%; Bilibili (BILI) +2.8%; Playstudios (MYPS) +4.2%; Playtika (PLTK) +2.4%.
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