U.S. FTC Moves to Block Microsoft’s Acquisition of Activision; FVE Remains $320

The U.S. Federal Trade Commission, or FTC, announced it intends to block wide-moat Microsoft’s $69 billion acquisition of Activision Blizzard. While we think Activision would strengthen Microsoft’s gaming division, we do not believe the health of the business unit, let alone the overall company, hinges upon the acquisition. Further, we think it is still more likely than not that the deal closes, even if more concessions are required.