Activision Blizzard Inc., its shares reeling after UK competition authorities rejected the company’s $69 billion sale to Microsoft Corp., posted quarterly results a day sooner than planned, reporting better-than-expected sales and profit.
(Bloomberg) — Activision Blizzard Inc., its shares reeling after UK competition authorities rejected the company’s $69 billion sale to Microsoft Corp., posted quarterly results a day sooner than planned, reporting better-than-expected sales and profit.
First-quarter bookings rose 26% to $1.86 billion, Activision said Wednesday, topping the $1.8 billion average of analysts’ estimates. Adjusted earnings grew to 60 cents a share, topping projections of 53 cents.
The results, while favorable, were overshadowed by the decision of UK regulators to reject the company’s sale to Microsoft. The Competition and Markets Authority said its concerns can’t be solved by remedies such as the sale of blockbuster title Call of Duty or other solutions involving promises to permit rivals to offer the game on their platforms.
Read more: Microsoft’s $69 Billion Activision Deal Blocked by UK
The companies plan to appeal the decision. Activision’s next big title, Diablo IV, comes out June 6.
Shares of Activision, based in Santa Monica, California, fell as much as 12% to $76.65 in New York, below the $95 a share Microsoft is offering. Microsoft, which posted better-than-expected financial results on Tuesday, was up 8% to $297.47.
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