CitiBank has published a report stating that the odds of Microsoft acquiring Activision, a video game development and publishing company, have increased from 50 to 70%. This comes after we witnessed a clear change in the British Markets and Competition Authority’s stance recently.
It is worth noting that the authority has issued a new statement indicating that the deal, after examination and investigation, will not affect competition in the home appliance market in Great Britain. The authority will issue its final statement in this regard on April 26.
The Competition Markets Authority (CMA) has published a new preliminary finding on its position on the Activision acquisition deal, after updating its previous findings. While the CMA was not keen on the acquisition in the past due to its negative repercussions on competition, it now appears to have changed its stance.
As SeekingAlpha reports, in addition to increasing the likelihood of a successful acquisition, CitiBank also increased its share price from $88 to $91.
Some analysts have pointed out that Activision's shares could see a significant increase if the deal is successful, as it is expected to reach US$$ 91. However, in the event that the acquisition deal fails, the company's shares could suffer a significant drop, and it is not excluded that they could reach as low as US$68.
It is worth noting that Activision's share price rose to $84.39 after the recent CMA report appeared, which increased investors' confidence in the success of the business.
