Microsoft's massive deal to acquire Activision sparks rally in EA, Ubisoft, and other gaming stocks
- Microsoft has agreed to acquire
ActivisionBlizzard in a reported all-cash deal worth $69 billion.
- Following the news, video-game stocks
EA, Ubisoft, and Take-Two all rallied in Tuesday trading.
- Broadly, the video game sector has made splashes in recent months as companies race into the nascent
Video-game stocks rallied Tuesday while the broader market sold off, after Microsoft reportedly agreed to acquire Activision Blizzard for $69 billion in an all-cash transaction.
Electronic Arts rose by about 7%, and Ubisoft surged by nearly 9%. Immersive gaming company Roblox rallied more than 2% before giving up gains. "Grand Theft Auto" maker Take-Two — which reached a deal last week to buy Zynga — added as much as 5%. Meanwhile, Activision stock soared 38%.
Microsoft and Activision's reported merger puts the former further into the video-game world and also acts as a lifeline for the latter. Earlier, Activision had seen its stock price down 40% amid workplace sexual harassment allegations.
The deal also gives the world's second most valuable company greater exposure to the emerging metaverse sector, Loup Ventures' Gene Munster told CNBC.
The video game sector has made splashes in recent months as companies race into the nascent metaverse sector. Take-Two has said it expects to leverage its takeover of Zynga for the metaverse.
It allows younger audiences of nearly 50 million users to build interactive worlds, which "coincides really well with what the metaverse is meant to do," said Loukas.
- A 24-year-old stock trader who made over $8 million in 2 years shares the 4 indicators he uses as his guides to buy and sell
- My fiancé and I picked out my engagement ring together before he proposed, and I don't regret missing out on the surprise
- Financial inclusion made easy for India’s small merchants with Paytm’s pioneering QR codes and Soundbox
- 10 Must-Do activities on your next Darjeeling Trip
- Govt received ₹1,70,501 crore in April as revenue
- Shubman Gill, Sunil Narine, Virat Kohli & more: IPL man of the series winners since 2008
- Five personal finance deadlines you can’t afford to miss in June
- List of famous things to buy in Darjeeling