Microsoft’s (NASDAQ: MSFT) $75 billion bid for Activision Blizzard (ATVI) could be scrutinized in the United Kingdom and Brussels, according to a Financial Times report.
According to the report, citing unknown sources, UK’s Competition and Markets Authority(CMA) could launch a thorough investigation as early as this week. This investigation will come amid concerns that the deal is anti-competitive and could keep ATVI’s rivals from accessing its immensely popular game, Call of Duty.
A press release from the CMA earlier this month stated, “Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming.”
The CMA further added that if these concerns were not addressed by Microsoft, it plans to “explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the interests of UK gamers and businesses.”
The Financial Times report points to this Phase 2 investigation. Microsoft has already been involved in a discussion with regulators in Brussels since January.
Is Microsoft a Buy, Sell, or Hold?
Analysts continue to remain bullish about the stock with a Strong Buy consensus rating based on 28 Buys and two Holds.
MSFT’s average price forecast of $327.41 implies that the stock has an upside potential of around 29.8%.
