Microsoft-Activision Spread Hits Lowest Since Merger Announced
- Deal optimism grows as UK narrows scope of antitrust review
- Activision shares jump most since 2021, 11% below offer price
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The gap between Activision Blizzard’s stock price and Microsoft Corp.’s takeover offer is at its narrowest level since the $69 billion merger was announced in January 2022, as an update from UK regulators lifts expectations that the deal could go through.
Activision rallied 5.9% on Friday to $84.39, the highest since August 12, 2021. The surge came after the UK Competition and Markets Authority narrowed the scope of their merger probe, putting the stock around 11% below Microsoft’s $95-per-share offer. The gap was 23% when British regulators voiced opposition to the tie up back in February.