Sony faces biggest drop in market share since financial crisis following Microsoft’s £55bn bid for Call of Duty maker

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Wednesday January 19, 2022 4:38 p.m.

Japanese tech giant Sony suffered its biggest one-day drop in market share since the global financial crisis in the Tokyo market following Microsoft’s $75bn (£55bn) bid sterling) on ​​Call of Duty maker Activision Blizzard.

Sony closed down 12.8%, following Microsoft’s overnight announcement that sent shockwaves through the industry.

While the announcement wiped $20bn (£15bn) from Sony’s valuation, according to Financial Times reports, it boosted investor confidence in Japanese publishers like Square Enix and Capcom, which have all saw their share increase by around 5%.

The deal is the latest – and biggest – game designer to be bought by Microsoft as it seeks to expand its games and console offering: signaling significant competition for companies like Sony.

Assuming the deal is successful, overcoming various anti-trust hurdles, the acquisition will make Microsoft the third-largest gaming company by revenue, just behind Tencent and Sony.

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