Microsoft is flying after the accounts, but the operation on Blizzard is in jeopardy

financial results for Microsoft Higher than expected gave the stock a sharp rally in the session, despite the wooden boards rained down by the British Competition Authority on the maximum takeover of Activision Blizzard. In response to the quarterly report published after Tuesday’s close, Microsoft stock opened ahead of it by more than 7.3% on Wall Street. The company’s fiscal revenue for the third quarter was $52.86 billion, compared to $51.02 billion estimated by the Refinev survey. Earnings per share beat expectations by $2.23 to $2.45.

Investors also welcomed the CFO’s expectations Amy Hood, where the revenue for the fourth fiscal quarter will be between $54.85 and $55.85 billion: the average value of the range also exceeds Refinitiv’s forecast at $54.84 billion in this case. Hood expected Microsoft to receive very encouraging feedback from the AI ​​capabilities announced so far, such as a chatbot built into the Bing search engine.

On the other hand, the decision of the British Competition Authority (CMA) affected Activision Blizzard stock, which fell by 10.8% during the session on Wall Street.. The deal that would have resulted in Microsoft acquiring the popular video game developer for $69 billion was awaiting pre-approval from regulators in the US, EU and UK. The London station is the first of three responses received so far that threaten to undermine Microsoft’s most expensive acquisition ever. According to the UK authority, the process would excessively restrict the choice available to consumers in the realm of cloud gaming, the video game entertainment system that allows you to play directly online without installing game software (a bit like streaming movies versus using a DVD).

Blizzard and Microsoft They announced that they would appeal the CMA’s decision, “which rejects the practical course of addressing competition concerns and discourages technological innovation and investment in the UK”.