Business & Economy

Sony stock plummets 13% after Microsoft’s Activision ordeal

Tokyo, Jan 19 (EFE).- Japanese technology multinational Sony plunged almost 13 percent on the stock market Wednesday after investors reacted negatively to Microsoft’s purchase of video game firm Activision Blizzard.

Sony shares opened sharply lower and were down almost 10 percent after the first hour of trading in Tokyo, a decline that extended throughout the day and ended at 12.78 percent.

The technology company was the day’s most traded and registered the greatest collapse among the companies listed in the main selective of the Japanese stock market, the Nikkei, which groups the 225 most representative values.

Sony investors reacted to the operation between the two American companies, which represents the largest acquisition of Microsoft to date and a strong commitment to the video game sector, in which it is a direct competitor of Sony.

The purchase, valued at $68.7 billion, will become one of the 20 largest such deals in history when completed. It has yet to pass the scrutiny of antitrust regulators, but it has already made investors in the Japanese firm nervous.

“They think Microsoft will make all Activision Blizzard games exclusive (to Xbox), hurting PlayStation sales and helping Microsoft close Sony’s hardware sales gap,” industry consultant Serkan Toto said concerning the stock market crash in their social networks.

Activision is the owner of important intellectual properties such as “Call of Duty,” “Crash Bandicoot,” “World of Warcraft,” “Diablo,” “Guitar Hero,” “Spyro,” “Tony Hawk,” “Overwatch” and “Candy Crush,” which will pass into the hands of Microsoft.

The company already has a significant presence in the world of video games with its Xbox console and titles such as “Minecraft.” It will become the third largest company in the sector in terms of turnover, only surpassed by China’s Tencent and its own Sony, current leader in this sector of digital entertainment.

While Microsoft’s historic operation was a stock market boost for other major video game companies such as the American Electronic Arts or the French Ubisoft, Sony received the news as a blow because of the threat it represents to its current hegemony. EFE


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