Activision Blizzard Stock Surges 3% in 2025 Following Microsoft and Sony's 10-Year Call of Duty Agreement

Activision Blizzard (ATVI) shares surged by more than 3% on Monday amid renewed optimism as Microsoft and Sony reached a landmark agreement to keep the iconic Call of Duty franchise available on PlayStation consoles for the next decade.

Phil Spencer, Microsoft Gaming CEO, announced via Twitter that this strategic 10-year pact resolves a significant hurdle in Microsoft's ambitious $68.7 billion acquisition of Activision Blizzard, assuring gamers continued cross-platform access to one of the industry's most popular titles.

Key Highlights

• Microsoft has pursued the acquisition of Activision Blizzard since January 2022.
• Regulatory and competitive concerns centered on potential exclusivity of hit games like Call of Duty had stalled the merger.
• The Sony agreement guarantees that Xbox’s main rivals will retain access to Call of Duty, promoting fair competition.

Earlier in 2024, Microsoft secured similar agreements with NVIDIA and Nintendo, enabling Call of Duty to reach over 150 million new devices through streaming on platforms like GeForce NOW and Nintendo Switch. Valve’s Steam was also included in these partnerships, though Sony had initially withheld consent.

The $68.7 billion deal, announced in January 2022, aims to consolidate some of gaming’s top franchises under Microsoft’s umbrella, including Call of Duty and World of Warcraft. However, regulatory bodies such as the U.S. Federal Trade Commission (FTC), UK authorities, and the European Union raised concerns about market competition and accessibility, leading to legal challenges and demands for concessions.

Despite recent court rulings favoring Microsoft, the FTC’s appeal and looming deadlines put pressure on the tech giant to finalize the acquisition or face a $3 billion termination fee payable to Activision. As of Monday noon ET, Sony’s stock rose approximately 1.5% and Microsoft’s shares increased by 0.22%, reflecting investor confidence in the deal’s progress.

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