Bobby Kotick, CEO of Activision Blizzard (NASDAQ: ATVI) termed the decision by the U.K. regulator to block its merger with Microsoft (MSFT) as a “flawed ruling in every respect.” In an interview with CNBC, Kotick commented, “The ruling was disappointing…These regulators they don’t really understand our business. They are making determinations and judgements that are not factually correct.”
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Microsoft’s Vice Chair and President Brad Smith said on Wednesday said that the company remains “fully committed” to the deal and is looking at appealing U.K.’s Competition and Markets Authority (CMA) decision. In the case Microsoft’s $69 billion deal with ATVI fails to occur, Activision will be eligible for a $3 billion break-up fee and will end up with around $18 billion in cash by the end of the year.
Analysts remain bullish about ATVI stock with a Strong Buy consensus rating based on 16 Buys and one Hold.