Activision Blizzard Inc (NASDAQ:ATVI) stock rose 0.89% (As on November 8, 10:48:32 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. For the quarter ended September 30, 2022, Activision Blizzard’s net bookings were $1.83 billion, as compared with $1.88 billion for the third quarter of 2021. In-game net bookings were $1.36 billion, as compared with $1.20 billion for the third quarter of 2021. For the quarter ended September 30, 2022, overall Activision Blizzard Monthly Active Users (MAUs) were 368 million. Activision Blizzard generated $257 million in operating cash flow for the quarter as compared with $521 million for the third quarter of 2021. The company is still planning to deliver a substantial amount of content from Blizzard next year, ATVI is now planning for a later launch for Overwatch 2 and Diablo IV than originally envisaged.

ATVI in the third quarter of FY 22 has reported the adjusted earnings per share of 68 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.83 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue by 7.38%.  GAAP net revenues from digital channels were $1.61 billion. GAAP operating margin was 27%. On a non-GAAP basis, Activision Blizzard’s operating margin was 34%.

Meanwhile, as announced on January 18, 2022, Microsoft plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. The transaction is subject to customary closing conditions and completion of regulatory review. The transaction, which is expected to close in Microsoft’s fiscal year ending June 30, 2023, has been approved by the boards of directors of both Activision Blizzard and Microsoft and by Activision Blizzard’s stockholders. On the other hand, the Regulators have been closely scrutinising Microsoft’s takeover of gaming giant Activision Blizzard and it was announced this week that the tech company has not offered any remedies to the European Commission (EC), which is looking into the legality of the takeover. Microsoft has not offered any concessions to the EC,  which means the bloc’s competition authority now has until 8 November to decide if it will conduct a Phase 2 investigation. Microsoft only commented in a statement that it was continuing to work with the European Commission to address valid market concerns.