Wall Street Is Betting Microsoft-Activision Deal Will Fail (2)

Activision Blizzard Inc. shareholders approved the company’s $69 billion sale to Microsoft Corp on Thursday, but Wall Street is betting that Biden antitrust enforcers could unravel one of the largest mergers in U.S. history.

Microsoft’s $95 offer is a 24% premium over Activision’s current share price, indicating investors see risk the buyout won’t close as planned. This risk premium is more than double that of Twitter Inc. following Elon Musk’s offer, and higher than most of the announced -- but still pending -- deals tracked by Bloomberg.

Tough-talk from President Joe Biden’s antitrust enforcers is fueling investor fears ...