Deutsche drops chances of Activision takeover by Microsoft to 10%

Deutsche Bank lowered the firm’s price target on Activision Blizzard to $89 from $90 and keeps a Buy rating on the shares. The company is experiencing solid momentum across its business, based on a robust slate of seasonal content updates for its key franchises, the analyst tells investors in a research note. The firm thinks Activision’s guidance for Q2 and 2023 will prove conservative. Following the U.K.’s decision, Deutsche feels approval of the takeover by Microsoft (MSFT) is "long shot." Appeals to Competition and Markets Authority decisions have faced relatively low rates of success historically, says the firm, which reduced its probability of deal approval down from 40% to 10%.