Sony faces biggest share fall since financial crisis following Microsoft’s £55bn bid for Call of Duty maker
Japanese tech giant Sony experienced its biggest one-day share drop since the global financial crisis on the Tokyo market, following Microsoft’s $75bn (£55bn) bid for Call of Duty maker Activision Blizzard.
Sony closed 12.8 per cent lower, following the overnight Microsoft announcement that sent shockwaves across the industry.
Whilst the announcement wiped $20bn (£15bn) from Sony’s valuation, according to reports from the Financial Times, it spurred investor confidence in Japanese publishers like Square Enix, and Capcom, who all saw a share boost of around five per cent.
The deal is the latest – and the biggest – game designer to be bought by Microsoft as it looks to expand its games and consoles offering: signalling significant competition for firms like Sony.
Assuming the deal is a success, making it past the various anti-trust hurdles, the acquisition will make Microsoft the third-largest gaming company by revenue, just behind Tencent and Sony.