CMA Clears Last Hurdle for Microsoft/Activision Deal

  • MSFT.us
    (${instrument.percentChange}%)

Comment

UK regulators have approved Microsoft's $69bn acquisition of Activision Blizzard, which removes the last hurdle for the deal. However, the Competition and Markets Authority said the deal won't include cloud gaming rights and said in a statement today that, "The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers."

The deal was announced last year when Microsoft agreed to buy Activision Blizzard for $95 per share. However, the CMA announced its opposition in April this year. Microsoft then, in August, offered concessions to get the deal through. These ensured that Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new games released over the next 15 years. These rights were conferred to Ubisoft Entertainment.

Sarah Cardell, chief executive of the CMA said that ""With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome."

Technical Analysis


Microsoft's green 5-week EMA is looking to cross above its orange 10-week EMA (black ellipse). If successful, this will be a bullish development. The weekly RSI has pushed back above 50 (green rectangle). This is the bullish side of the indicator, suggesting a positive momentum.

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If the RSI holds above 50, the EMAs should cross, putting them into a bullish formation.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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