Activision Blizzard Inc (NASDAQ: ATVI) is down about 10% today after the U.K. Competition and Markets Authority said it will not let Microsoft Corp (NASDAQ: MSFT) acquire this gaming giant.
Cramer reacts to the CMA decision
On Wednesday, the regulator concluded that the Microsoft-Activision merger will be a threat to competition as the former could make the latter’s titles exclusive to its Xbox Game Pass – a decision that MSFT intends to appeal.
The announcement arrives only a day after Microsoft reported a strong third quarter (read more). Reacting to today’s development, famed investor Jim Cramer said:
Last night, MSFT said incredible things about gaming and how they’re doing. It was almost as if they knew they may not get this. I think the Microsoft stock justifiably went up because they don’t need it.
Microsoft shares are up nearly 9.0% this morning.
Cramer is willing to buy Activision stock here
Activision Blizzard is now trading roughly at the same price at which it started the year.
Interestingly, Cramer is convinced that the failure to merge with Microsoft Corp is not a big deal for the gaming company either. On CNBC’s “Squawk Box”, he noted:
They don’t need it. I don’t own Activision but I’d buy it right here. If you listen to Strauss Zelnick (Take-Two CEO), he was saying second half could be good. So, I think Activision Blizzard right now is good.
Also on Wednesday, Activision Blizzard reported its financial results for the first quarter that topped Street estimates. Wall Street currently has a consensus “overweight” rating on “ATVI”.
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