June 17, 2024
EA’s stock catches downgrade as blocked Microsoft deal for Activision eliminates ‘takeout premium’

EA’s stock catches downgrade as blocked Microsoft deal for Activision eliminates ‘takeout premium’

The blocking of Microsoft Corp.’s acquisition of Activision Blizzard Inc. by U.K. regulators has thrown cold water on any potential large deals in the videogame space, prompting one analyst to downgrade shares of Electronic Arts Inc.

In a Thursday note, BMO Capital Markets analyst Gerrick Johnson downgraded EA EA to market perform from outperform and reduced his price target on the stock to $125 from $150 to account for a reduction in the implied “takeout premium” for EA following the blocking of Microsoft’s MSFT $69 billion…

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