Ubisoft leads European game makers' rally on Microsoft/Activision deal

Paradox Interactive AB (publ)

18/01/2022 15:57

(Adds details, more analyst quotes)
    ** European game makers rise in afternoon trade, boosted by
Microsoft's  MSFT.O  $68.7 bln cash bid on "Call of Duty" maker
Activision  ATVI.O   urn:newsml:reuters.com:*:nL4N2TY36A
    ** Shares in Ubisoft  UBIP.PA  rally 11.8%, heading for
their best day since Oct. 2015, while CD Projekt  CDR.WA ,
Embracer  EMBRACb.ST , Frontier  FDEV.L , Paradox  PDXI.ST  and
Rovio  ROVIO.HE  rise 1%-6%
    ** "Microsoft/Activision is a 'platform acquires content'
deal with a sprinkling of Activision as a wounded target after
allegedly toxic workplace/governance issues," Jefferies says
    ** "A crazy thing", Midcap Partners says, as the deal
follows recent Take-Two  TTWO.O /Zynga  ZNGA.O 
combination urn:newsml:reuters.com:*:nL4N2TQ2A8, and asks: "Is Ubisoft next on the
list?" 
    ** "Understandably Ubisoft is the European beneficiary of
readacross sentiment given it is also wounded in share price and
investor sentiment terms," Jefferies adds
    ** Credit Suisse says Microsoft's bid reflects an
acceleration of the sector consolidation but says Ubisoft loses
"(for now) one major likely partner"
    ** Last year, a sales trader note flagged Ubisoft had in the
past attracted interest from the likes of Vivendi  VIV.PA  or
Tencent  0700.HK   urn:newsml:reuters.com:*:nL5N2N638G

 (Reporting by Juliette Portala, Diana Mandiá)
 ((juliette.portala@tr.com))