Activision Blizzard Director Peter Nolan has purchased over $1M worth of shares in the company, buying 13,160 shares at $75.9882 a share. This news comes after the UK Competition and Markets Authority (CMA) recently announced their decision to block the acquisition of Activision Blizzard by Microsoft, citing concerns over competition in the video game industry, particularly cloud-based gaming.
This move by Peter Nolan, who is a non-executive Director of Activision Blizzard, demonstrates his confidence in the company despite the failed acquisition attempt by Microsoft. It also shows that he believes the company’s shares are undervalued and has faith in its future growth prospects.
UK Competition and Markets Authority Blocks Microsoft Acquisition
The UK Competition and Markets Authority’s decision to block Microsoft’s acquisition of Activision Blizzard has come as a blow to both companies. The CMA’s decision was based on concerns over competition in the video game industry, particularly cloud-based gaming. The merger spread on the deal was 27.4%.
Microsoft had announced its intention to acquire Activision Blizzard in January 2022, with the deal valued at $68.7 billion. The acquisition would have made Microsoft a major player in the video game industry, particularly in the growing market of cloud-based gaming. However, the CMA ruled that the acquisition would give Microsoft too much power in the industry, and would lead to a lack of competition and innovation.
Peter Nolan’s Purchase Signals Confidence in Activision Blizzard
Peter Nolan’s purchase of over $1M worth of Activision Blizzard shares shows his confidence in the company’s future growth prospects, despite the failed acquisition attempt by Microsoft. Nolan has been a non-executive Director of Activision Blizzard since 2019 and is also a member of the company’s Audit Committee.
Activision Blizzard is a leading video game company, with popular franchises such as Call of Duty, World of Warcraft, and Candy Crush. The company has a strong track record of revenue growth and profitability, and its shares have performed well in recent years. Nolan’s purchase signals that he believes the company’s shares are undervalued and that there is potential for further growth in the future.
Conclusion
The UK Competition and Markets Authority’s decision to block Microsoft’s acquisition of Activision Blizzard has come as a blow to both companies, but Peter Nolan’s purchase of over $1M worth of shares in Activision Blizzard demonstrates his confidence in the company’s future growth prospects. The video game industry is a fast-growing and competitive market, and Activision Blizzard is well positioned to benefit from this growth. While the failed acquisition attempt by Microsoft may have caused some uncertainty in the short term, Nolan’s purchase signals that he believes the company’s shares are undervalued and that there is potential for further growth in the future.
