The share price of game developer Activision Blizzard has been heavily in the red since the end of April.
The share price, which was still quoted at almost 87 US dollars on April 25, lost more than 15% at times in a wide downward gap.
Although the share price has since recovered by 7%, it has not even been able to crack the $80 mark.
And this despite the fact that the figures for this year’s first quarter were better than expected.
At $1.86 billion, sales published on April 26 were 4.7% above forecasts,
while earnings per share topped $0.93 instead of the expected $0.51.
However, the share price slump was not due to the figures, but to the takeover of the game developer by tech giant Microsoft, which was prevented by the British antitrust authorities.
As early as January 2022, the latter announced its intention to acquire Activision Blizzard for around 69 billion US dollars.
Although the EU Commission has now approved the takeover of the manufacturer of games such as “Overwatch”, “World of Warcraft”, “Starcraft” and “Hearthstone”,
which also allowed the share price to recover last week.
However, as the British antitrust authority and also responsible authorities in the USA have not yet been convinced of the permissibility of the takeover,
the acquisition is still open, which is also reflected in the current share price. However, should all parties involved agree to the takeover in the near future,
we could see a similar upward price breakout as at the beginning of 2022, when the takeover was first announced.
Otherwise, the price could continue in a sideways movement.