Activision Blizzard Analyst Sees Its Deal With Microsoft Happening

Wedbush analyst Nick McKay assumed coverage on Activision Blizzard Inc ATVI with an Outperform rating and a price target of $95.
The analyst expects Microsoft Corp MSFT to close its proposed acquisition of Activision Blizzard over the next several months.
At a high level, Microsoft must maintain the status quo within the video game industry through legally binding agreements that address game availability, pricing, quality, and release timing.
Once the company has entered into such agreements, regulatory concerns around the potential for lessening competition should largely subside, paving the way for the deal's completion in relatively short order.
There appears to be less concern from the investors whom the analyst spoke with about the implications of the deal falling apart for Activision Blizzard's share price.
The analyst attribute that it has moved past the pandemic-related slowdown to development faster than its primary peers, as reflected in the high quality and intense performances of its FY22 releases and the significant potential of its FY23 releases.
The shares remain part of the Wedbush Securities Investment Committee's Best Ideas List.
In January, Alphabet Inc's GOOG GOOGL Google and Nvidia Corp NVDA joined Sony Group Corp SONY in raising issues with the $69 billion deal, which the FTC opposed in December.
The FTC argued that the deal would impede competition in the video game industry and has scheduled an in-house trial for August.
Sony, whose PlayStation console competes with Microsoft's Xbox, has previously argued that it sees the Activision deal as anti-competitive.
Price Action: ATVI shares traded higher by 0.20% at $76.76 on the last check Friday.