Examining the Impact of CMA’s Final Report on Activision Blizzard Merger
April 3, 2023
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The impact of the Competition and Markets Authority’s (CMA’s) Final Report on the Activision Blizzard ($NASDAQ:ATVI) Merger is of immense importance to those in the industry. Activision Blizzard is an American video game holding company based in Santa Monica, California. With the coming release of the CMA’s Final Report on the Activision Deal, it is important to gain insight into its implications before it is made public. The CMA will likely analyze the effects of the proposed deal on competition within the UK video game market, such as the potential for a monopoly or oligopoly.
The report could potentially have far-reaching implications if it forces Activision Blizzard to make changes or divest some of its assets in order for the merger to be approved. It could also provide clarity for other companies looking to make similar mergers and acquisitions in the future. Industry experts and investors alike should pay close attention to its findings, as they may influence future decisions made by major players in the industry.
Share Price
On Friday, the stock of video game publisher and developer Activision Blizzard (ATVI) opened at $85.0 and closed at $85.6, up by 0.8% from the previous closing price of 84.9. This is likely due to the recent announcement of the UK Competition and Markets Authority (CMA) Final Report regarding the merger between Activision Blizzard and Vivendi. After completing their investigation, the CMA announced that they do not believe that the deal will lead to a substantial lessening of competition and subsequently cleared the merger.
With both the UK and US authorities approving the merger, it is expected that Activision Blizzard will be able to complete the deal in the near future, leading to their stock price increasing in anticipation of a successful merger. The 0.8% increase in their stock price is likely due to investors feeling confident in the news from the CMA Final Report and the subsequent approval of the merger. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Activision Blizzard. More…
| Total Revenues | Net Income | Net Margin |
| 7.53k | 1.51k | 20.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 2.22k | -4.99k | -534 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.38k | 8.14k | 24.54 |
Key Ratios Snapshot
Some of the financial key ratios for Activision Blizzard are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | -1.4% | 24.6% |
| FCF Margin | ROE | ROA |
| 28.3% | 6.1% | 4.2% |
Analysis
At GoodWhale, we have conducted a careful examination of ACTIVISION BLIZZARD‘s fundamentals. After our analysis, we have concluded that ACTIVISION BLIZZARD is a medium risk investment in terms of financial and business aspects. As a registered user, you can check out the risk warnings that we have detected in the income sheet and balance sheet of the company. We highly advise that you take caution when making an investment decision with this company. More…
Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.
– Electronic Arts Inc ($NASDAQ:EA)
Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
Summary
Activision Blizzard is a global leader in interactive entertainment and gaming, with a focus on creating high-quality content, products, and experiences for its customers. The company recently underwent an acquisition deal with Vivendi, which was reviewed by the Canadian Mergers and Acquisitions (CMA), and is expected to release a final report on the deal shortly. The CMA is analyzing the impact of the deal on competition in the video game industry, including pricing, innovation, and other aspects. Investors should expect the report to focus on whether the deal is likely to lead to a decrease in competition in the market, as well as whether it will have an adverse effect on the overall video game industry.
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