After a long battle between Microsoft (NASDAQ:MSFT) and the Federal Trade Commission (FTC) over the acquisition of Activision (NASDAQ:ATVI), a court ruling has been delivered. Indeed, U.S. District Judge Jacqueline Scott Corley ruled in favor of Microsoft, meaning that the deal can go through in the U.S. However, the company still needs approval in the UK. Nevertheless, ATVI shares spiked as a result of the news.
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The judge doesn’t believe the acquisition will hurt competition and instead believes the opposite will happen. The timing is crucial as the deal’s deadline is currently set for next Tuesday. That will be when Microsoft and Activision can decide to walk away, extend, or renegotiate the deal.
Regardless of whether or not the deal goes through, MSFT stock is still considered a Strong Buy by analysts. Nevertheless, it only offers 5.26% upside potential.