Markets Insider By Carla Mozée
- Activision Blizzard shares sank Wednesday after the UK blocked its pending buyout by Microsoft.
- A UK regulator said the $69 billion deal would cause “harm” to competition in cloud gaming in the country.
- Microsoft said it will appeal the regulator’s decision.
Activision Blizzard sharply dropped Wednesday after the “Call of Duty” publisher’s pending buyout by Microsoft was rejected by a UK regulator on the grounds it would hurt competition in cloud gaming.
Activision shares fell about 10% at the open to $79.30. The stock dropped below $80 a share for the first time in a month after the $69 billion merger deal was blocked.
“We remain fully committed to this acquisition and will appeal,” Microsoft said about the decision by the UK Competition and Markets Authority related to the deal it struck in January 2022.
“Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job,” the CMA said in a statement outlining Microsoft’s “strong position” in cloud gaming services. It said the merger would cause “harm” to competition in cloud gaming in the UK.
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