By Dhirendra Tripathi
Investing.com – Sony (T:) stock plunged the most in 13 years in Tokyo trading Wednesday as traders tried to calculate the impact that Microsoft’s (NASDAQ:) acquisition of Activision Blizzard (NASDAQ:) will have on the maker of PlayStations.
The stock closed nearly 13% down in Tokyo while the NYSE-listed shares (NYSE:) traded 5% lower premarket.
While Sony’s PlayStation leads Microsoft’s Xbox in the gaming market for consoles, the acquisition of the video games publisher hands Microsoft a formidable library of titles such as Warcraft, Overwatch, Diablo and Candy Crush.
Sony and Microsoft, two of the world’s dominant console makers, accounted for 17% and 11% of Activision’s 2020 revenue, making them its largest and fourth largest customer, respectively, according to a filing.
Any attempt by Microsoft to remove titles from Sony’s system will be a complex exercise and could invite charges of being anti-competitive. At the same time, the industry’s biggest acquisition indicates Microsoft’s commitment to a play in the metaverse, a so-called ecosystem where people come to interact, play, watch and study online.
In the all-cash offer announced Tuesday, Microsoft said it will buy the ‘Call of Duty’-owner for $68.7 billion. The deal values each Activision share at $95. The stock of the video games publisher closed at $82.31 in the previous session, nearly 26% higher.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.