Activision Blizzard Inc (NASDAQ:ATVI) stock rose 5.40% (As on February 7, 11:12:40 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter results that beat Wall Street estimates just as the video game maker’s sale to Microsoft is expected to face more headwinds. On a non-GAAP basis, Activision Blizzard’s operating margin was 24%. Activision Blizzard generated $1.12 billion in operating cash flow for the quarter as compared with $661 million for the fourth quarter of 2021.

ATVI in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.87, beating the analysts’ estimates for the adjusted earnings per share of $1.51. Net bookings, the number of products and services sold digitally or sold physically, was $3.57 billion beating estimates of $3.19B. The company had reported the adjusted revenue of $2.33 billion, as compared with $2.16 billion for the fourth quarter of 2021. GAAP net revenues from digital channels were $1.97 billion. GAAP operating margin was 16%. In-game net bookings were $1.82 billion, as compared with $1.24 billion for the fourth quarter of 2021. For the quarter ended December 31, 2022, overall Activision Blizzard Monthly Active Users (MAUs) were 389 million.

Meanwhile, Microsoft Corp.’s $69 billion Activision Blizzard Inc. takeover faces a key decision in Britain as the nation’s merger watchdog marks its arrival as a global regulator with findings that could set the trajectory to the mega deal finalizing — or falling apart. The Competition and Markets Authority is expected in the coming days to issue its provisional findings, signaling whether it aims to block the deal or clear it with specific remedies such as selloffs. The regulator already flagged concerns that the deal could cause competition issues in the consoles and subscriptions market, as well as the more nascent cloud gaming sector. As announced on January 18, 2022, Microsoft plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. The transaction has been approved by the boards of directors of both Activision Blizzard and Microsoft and by Activision Blizzard’s stockholders. The two parties are continuing to engage with regulators reviewing the transaction and are working toward closing it in Microsoft’s fiscal year ending June 30 2023, subject to obtaining required regulatory approvals and satisfaction of other customary closing conditions.