Sony shares have fallen by 13 per cent — which equates to roughly $20 billion — since Microsoft announced its plans to acquire Call of Duty publisher Activision for $68 billion. The sharp drop in market value represents Sony's biggest loss since October 2008, removing $20 billion from the company's value in just one day. However, stock value is expected to recover in due course.
Of course, this is simply how the stock market reacts to such major news. It always has done and it likely always will. Interestingly, Microsoft's stock value also took a slight hit yesterday. It is, after all, intending on spending $69 billion and the news has negatively impacted its value too.
Microsoft bought Activision at $95 per share, which when is totalled to $68 billion, means the company paid around 45 per cent above Activision's stock price prior to the announcements.
There was positive news for other major publishers, however. Shares at Square Enix, Capcom, and Konami all rose by five per cent while Ubisoft went up by 11 per cent. Perhaps shareholders see the companies as the next potential targets for a takeover. The deal is expected to close at some point next year, but we believe it already spells bad news for PS5 and PS4.