While the market waits on regulatory approval of Microsoft's (NASDAQ:MSFT) takeover, Activision Blizzard (NASDAQ:ATVI) is on the verge of releasing a flurry of new content that should drive results in Q3 and Q4. Benchmark noted the content and called it a "significant" second-half catalyst that should drive growth into 2023. Names on the roster include new releases in the Call of Duty, World of Warcraft, and Overwatch brands while a new Diablo release is slated for next year.
Moffet Nathanson recently upgraded the stock citing a 20% discount to the Microsoft offer. They upped the stock to a Buy and raised the target to $95, in line with the analyst consensus. In their view, the deal with Microsoft should go through despite the regulatory hurdles and the discount to price is an "uncorrelated market opportunity" deserving an upgrade. Ultimately, the FTC has to decide if Microsoft's acquisition will give them enough leverage to run rough-shod over competitors like Sony (NYSE:SONY), Nintendo (OTC:NTDOY), and even smaller players like Zynga (NASDAQ:ZNGA) and that scenario is unlikely. More likely, the deal will allow Microsoft to compete better within the industry and that is good for investors and gamers alike.
