Microsoft (NASDAQ:MSFT) might receive an antitrust warning from the European Commission (EC) relating to its proposed Activision Blizzard (ATVI) acquisition deal worth $69 billion, as per a Reuters report. A charge sheet is apparently being prepared by the EC and will be sent to Microsoft in the upcoming weeks.
The Commission started an in-depth investigation of the deal in November 2022 over concerns that the acquisition might significantly limit competition in the gaming space. It is important to note that EC can decide on the deal until April 11.
Microsoft announced its proposed acquisition of Activision in January 2022 with hopes to strengthen its presence in mobile gaming. Among the latest hurdles, Alphabet (GOOGL) and Nvidia (NVDA) have recently raised separate concerns about the deal. Also, in December 2022, the Federal Trade Commission filed a lawsuit to block this acquisition.
Is Microsoft a Good Buy?
Wall Street’s Strong Buy consensus rating for Microsoft stock is based on 26 Buys and three Holds. The average stock price target of $286.13 suggests about 19.6% upside potential from current levels. Shares have declined 5.4% over the past six months.
