Microsoft’s (NASDAQ:MSFT) $69 billion acquisition of interactive entertainment giant Activision Blizzard (NASDAQ:ATVI) took a step closer to completion with the approval of Brazil’s antitrust regulator, the Brazil Administrative Council for Economic Defense (CADE).
The acquisition has been shrouded in disapproval from major rivals and governments claiming that the deal will drastically reduce competition, giving Microsoft the edge in the gaming segment. However, CADE does not believe that the possibility of players migrating from Sony’s PlayStation to Xbox after the latter is integrated into the Microsoft ecosystem poses any threat to the console market.
Brazil’s approval was smooth and without any conditions, citing that the purpose of their decision is to ensure the protection of competition as well as safeguarding the interests of Brazilian consumers. The approval also highlighted that the decision was not made to protect “the particular interests of specific competitors,” hinting at Sony (NYSE:SONY) and Alphabet’s (NASDAQ:GOOGL)(NASDAQ:GOOG) attempts to thwart the buyout.
The mega-deal was earlier approved by the Saudi Arabian antitrust body. It is still under investigation by the UK’s antitrust regulator, the Federal Trade Commission (FTC), and the European Commission.
Is Microsoft a Buy or a Sell?
Microsoft stock is a Strong Buy on Wall Street, backed by 27 Buys and three Holds. The average price target for MSFT stock is $323.88, which implies 30% upside potential to the current price.
