Ever since Microsoft offered to acquire Activision Blizzard King, it eventually led to a series of court hearings and legal drama. Currently, it seems like the court appears to favor the Xbox parent company, as it’s likely that the deal could close very soon. That’s because the US stock market has announced that Call of Duty maker is ready to depart from the Nasdaq index.
Earlier this week, federal judge Jacqueline Corley turned out the preliminary injunction request to stop the acquisition. Thus, it marked a huge victory for Microsoft over its legal fight with the FTC (Federal Trade Commission). However, it’s a little unfortunate for the tech giant, as once again it will clash with the FTC over a recently filed appeal.
It’s obvious that the FTC has no intention of giving up, as they have filed another appeal of Jacqueline Corley’s decision. Hence, yet again, the acquisition is put at bay until further court proceedings. However, Activision’s exit from the US stock index says a different story, so let’s check it out.
Activision Is All Set to Depart From the Nasdaq Index
Earlier today, Nasdaq left the entire gaming community surprised by announcing the same. Starting July 17th (Monday), The Trade Desk, Inc. (Nasdaq: TTD) will replace Activision Blizzard, Inc. (Nasdaq: ATVI). Thus, the changes will take place across many Nasdaq index funds, such as:
- Nasdaq-100 Index (Nasdaq: NDX)
- Nasdaq-100 Equal Weighted Index (Nasdaq: NDXE)
- Nasdaq-100 Ex-Tech Sector Index (Nasdaq: NDXX)
That’s not all, the gaming powerhouse will also leave the Nasdaq-100 ESG Index (Nasdaq: NDXESG).
Here’s what the Nasdaq officially announced, “The replacement of Activision Blizzard with The Trade Desk is independent of the Nasdaq-100 Index® Special Rebalance which will continue as planned, effective Monday, July 24, 2023.” Therefore, Activision’s departure from Nasdaq has raised all eyes on its ongoing acquisition deal. And here’s how it hints at the completion of its merger with Microsoft.
What does Activision’s exit from Nasdaq mean?
Due to the lack of official confirmation from either Microsoft or Activision, it’s quite early to draw any conclusions. However, the absence of the Call of Duty maker on Nasdaq definitely teases some big upcoming hearings regarding the deal. Therefore, we are most likely to hear some final judgment in the coming week. Know more about the appeal here.
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