There was some doubt, for a while there, if the huge deal between Microsoft (NASDAQ:MSFT) and Activision-Blizzard (NASDAQ:ATVI) would ultimately go through. However, the acquisition managed to get the nod from the European Union.
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Despite plenty of concern and objection from the European Commission about what might happen to Activision titles like “Call of Duty” on other companies’ platforms, formal agreements to allow such titles access sealed the deal. EU regulators believed the agreements would both “…fully address the competition concerns…” and “…represent a significant improvement for cloud gaming…”
Yet, even without the assurances, there were signs that the European Union wasn’t particularly worried. The EU noted that Microsoft “would have no incentive” to refuse Activision games to Sony (NYSE:SONY). Even if it did, it wouldn’t matter so much; the EU’s own words were that such a move “…would not significantly harm competition in the consoles market.” After all, both Sony and Microsoft consoles currently offer console-exclusive titles, and it hasn’t destroyed the market yet.
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 29 Buys, four Holds, and one Sell. However, it only offers 6% upside potential thanks to its average price target of $327.14.
