Activision Blizzard saw its stock decline after publishing its latest financial report. The price hit its lowest point since Microsoft announced its intent to acquire the company for $68.7 billion in January.
The Call of Duty maker’s shares closed at $76.1 on April 27, which is down 1.3%. It is almost 20% lower than Microsoft’s bid of $95 per share, CNBC reported.
Microsoft stock, on the other hand, grew 6% on Tuesday, thanks to the company’s financial results, which beat analysts’ expectations.
Activision Blizzard, meanwhile, reported net revenues of $1.77 billion (down 22.2% year-over). The company’s net income for the first quarter of 2022 was $395 million, which is down 36.1% compared to the same period from the previous year.
The publisher explained the decline by lower Call of Duty sales and increased fees for legal activities related to the Microsoft deal.
The transaction is expected to close before July 2023. However, there is still a chance that the acquisition will be blocked by regulators. In this case, Activision Blizzard will receive a $3 billion compensation from Microsoft, which will undermine the company’s position on the stock exchange.
However, most analysts still have the target price for Activision Blizzard set at $95 per share.