Shares of Activision Blizzard (NASDAQ:ATVI) were down 1.5% at one point in today’s trading. The problem stems from issues of access to Activision’s flagship series, “Call of Duty,” and how readily Sony (NYSE:SONY) can get in on the action.
Activision rallied from those losses in the afternoon, but the news still did little good for Activision. The rally faltered less than two hours after it began.
Microsoft (NASDAQ:MSFT), which has been looking to buy Activision since January, made overtures to chief rival Sony regarding the popular franchise. The deal offered Sony access to “Call of Duty” for 10 years, assuming the Microsoft and Activision deal goes through.
Reports suggest that the Sony and Microsoft deal isn’t likely to address all of Sony’s concerns—there’s more to Activision than just “Call of Duty”–and that’s far from the only issue. Indeed, both the Federal Trade Commission and UK regulators have had concerns about the deal as well.
Despite today’s slight slump, analysts still look for big things from Activision. It’s currently considered a Strong Buy by analyst consensus. Plus, with an average price target of $91.17, it has 20.55% upside potential.
