Why Activision Blizzard (ATVI) Stock Is Plunging Today

Activision Blizzard, Inc ATVI shares tumbled on Wednesday after the U.K. competition regulator objected to the Microsoft Corp MSFT- Activision deal.
The Competition and Markets Authority opposed Microsoft's proposed purchase of Activision over concerns that the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and fewer choices for U.K. gamers over the years to come.
The final decision to prevent the deal comes after Microsoft's solution failed to address the concerns in the cloud gaming sector effectively.
Microsoft entered into a $68.7 billion deal to buy 'Call of Duty' creator Activision, one of the world's most popular video game publishers, in January 2022.
The CMA launched an in-depth review of the deal in September 2022. In February 2023, the CMA provisionally found that the merger could strengthen Microsoft in cloud gaming, stifling competition in this growing market.
Activision proposes to work aggressively with Microsoft to reverse the decision on this appeal.
Price Action: ATVI shares traded lower by 11.20% at $77.00 premarket on the last check Wednesday.