Why is everyone talking about Activision Blizzard stock?
Sep 16, 2021 · Case 1: Activision Blizzard stock drops by -5% or more in a week. Case 2: Activision Blizzard stock rises by 5% or more in a week
How does Activision Blizzard make money?
If you are looking for stocks with good return, Activision Blizzard Inc can be a profitable investment option. Activision Blizzard Inc quote is equal to 79.300 USD at 2022-03-28. Based on our forecasts, a long-term increase is expected, the …
Will Activision stock go up?
Jan 18, 2022 · Here’s what we know about the upcoming transaction and what will happen to Activision Blizzard (NASDAQ:ATVI) stock. MSFT will buyout Activision in …
Is Activision Blizzard a buy now?
Jan 18, 2022 · January 18, 2022. Today brings the news of the biggest deal of 2022 so far. Tech giant Microsoft (NASDAQ: MSFT) has announced plans to acquire Activision Blizzard (NASDAQ: ATVI ), a company that ...
Will Activision stock convert to Microsoft?
This means shareholders will no longer own stock in the surviving business, which would be a wholly-owned subsidiary of Microsoft. However, shareholders will have the option to convert shares and will be entitled to receive $95 in cash for every Activision Blizzard share they hold.Mar 22, 2022
What happens when Microsoft buys Activision?
Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard's net cash. When the transaction closes, Microsoft will become the world's third-largest gaming company by revenue, behind Tencent and Sony.Jan 18, 2022
Is Activision a buy or sell?
Stockchase rating for Activision Blizzard is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
What will happen with ATVI stock?
Microsoft (ticker: MSFT ) will acquire Activision Blizzard ( ATVI ) for $95 a share in an all-cash transaction valued at $68.7 billion, including Activision Blizzard's net cash. The acquisition is Microsoft's largest transaction ever.Jan 18, 2022
Who bought Activision?
MicrosoftMicrosoft shocked the tech and gaming world on January 18th when it announced it would acquire Activision Blizzard in a $68.7 billion deal, by far the biggest ever in gaming.Feb 18, 2022
Is Activision Blizzard stock a buy?
Broad Value Outlook. In aggregate, Activision Blizzard currently has a Zacks Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Activision Blizzard a solid choice for value investors, and some of its other key metrics make this pretty clear too.Dec 14, 2021
Is Activision stock gonna go up?
Stock Price Forecast The 23 analysts offering 12-month price forecasts for Activision Blizzard Inc have a median target of 95.00, with a high estimate of 100.00 and a low estimate of 82.00. The median estimate represents a +18.19% increase from the last price of 80.38.
Does Activision Blizzard pay a dividend?
Does Activision Blizzard pay a dividend? Our Board of Directors declared a cash dividend of $0.47 per common share, payable on May 6, 2021, to shareholders of record at the close of business on April 15, 2021.
Is Atai a buy?
Out of 10 analysts, 6 (60%) are recommending ATAI as a Strong Buy, 3 (30%) are recommending ATAI as a Buy, 1 (10%) are recommending ATAI as a Hold, 0 (0%) are recommending ATAI as a Sell, and 0 (0%) are recommending ATAI as a Strong Sell. What is ATAI's earnings growth forecast for 2022-2024?
Why did Microsoft buy Activision?
Microsoft's acquisition spree Going after a big publisher like Activision is an attempt to bolster its exclusive lineup of games designed to run on both Xbox game consoles and PCs. Exclusives and valuable IPs are critical to selling a console, and Microsoft never had these.Jan 20, 2022
Will Microsoft Activision deal get blocked?
Nadella said the deal will only make Microsoft the third largest company in the space.Feb 4, 2022
When did Microsoft buy Activision?
18 January 2022Microsoft confirmed it agreed to acquire Activision Blizzard for $68.7 billion on Tuesday 18 January 2022 at around 8.30am ET. It's massive news, not only in the amount Microsoft is paying, but also the big-name titles it's acquiring. What does it mean for PS5?Jan 31, 2022
"Should I invest in Activision Blizzard stock?" "Should I trade "ATVI" stock today?"
According to our live Forecast System, Activision Blizzard Inc stock is a good long-term (1-year)...
What is the Activision Blizzard stock price / share price today?
The Activision Blizzard stock price is 81.100 USD today.
Will Activision Blizzard stock price grow / rise / go up?
Yes. The ATVI stock price can go up from 81.100 USD to 91.875 USD in...
Is it profitable to invest in Activision Blizzard stock?
Yes. The long-term earning potential is + 13.29 % in one year.
Will ATVI stock price fall / drop?
No. See above .
What will Activision Blizzard stock price be worth in five years (2027)?
The ATVI ("ATVI" ) future stock price will be 133.800 USD .
Will ATVI stock price crash?
According to our analysis, this will not happen.
Will Activision Blizzard stock price hit 100 USD price in a year?
Not within a year. See above .
Will Activision Blizzard stock price hit 200 USD price in a year?
Not within a year. See above .
MSFT will buyout Activision in an all-cash deal
Microsoft is buying Call of Duty, Tony Hawk Pro Skater, and World of Warcraft maker Activision Blizzard for $68.7 billion in an all-cash deal.
Microsoft roots its decision in community, but Activision employees are still struggling
In December, reports about a major Activision resignation swirled. This followed the walkout and petition employees produced to attempt to get Kotick out of his chief executive post. Unionization is still on employees' minds, and it isn't clear whether the internal community will be able to do so under Microsoft’s watch.
NASDAQ: MSFT
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Locking in a quick gain is tempting, but there are good reasons to hold your Activision Blizzard shares until the deal is finalized
Microsoft 's ( MSFT 5.11% ) proposal to buy top game publisher Activision Blizzard ( ATVI 0.37% ) is far from a done deal. On Tuesday, the software giant agreed to pay $68.7 billion, or $95 per share, in an all-cash deal to buy Activision .
NASDAQ: MSFT
I bought shares of Activision Blizzard when the stock was trading in the $60s, but deal or no deal, there are two reasons I'm not planning to cash out anytime soon.
Reason 1: It's easy money
Microsoft's buyout offer was 15% above Tuesday's closing price. Investors can earn another 15% gain by simply holding their Activision shares until the deal is finalized, which will look like a smart move if the market declines in 2022. But first, the deal has to be approved. Here's why that should happen.
Reason 2: The deal might not happen
One reason the deal won't receive approval is that it would fuel more industry consolidation and, in turn, give big tech the green light to make more deals and dominate a large and growing entertainment market.
It's a win-win
If Microsoft's acquisition attempt fails, Activision shareholders would still own a highly profitable game company that is well-positioned to ride the future growth of the industry, with top franchises under its belt, and interests in esports and consumer products to boot.
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Background
Microsoft ( MSFT) has announced the acquisition of Activision Blizzard ( ATVI) for $95 per share, representing a 45% premium over the previous trading day's closing price. The transaction value was $68.7 billion.
The regulatory risk
The deal must be approved by the antitrust authorities of the United States, Europe, and China. The US regulator is of particular concern, as it has been keeping a close eye on the tech giants in recent years. Previously, Meta (Facebook) (NASDAQ: FB) and Alphabet (NASDAQ: GOOG) were mostly the focus of antitrust regulators.
The possibility of ATVI's shareholder disapproval
A premium of 45% at first glance seems high. However, in comparison with the company's historical multiples, it does not look so high. The buyout price assumes the multiple of 7.6x EV/Revenue (2022) and 17.2x EV/EBITDA. To get an idea of how high this is, remember that in early 2021 the stock traded close to a 9x EV/Revenue (2022) multiple.
The possibility of MSFT's shareholder disapproval
As the main driver for Microsoft in buying Activision, I highlight the interest in expanding the library of video games in the Xbox Game Pass subscription (available on the Xbox console and for PC users) to boost the popularity of the Xbox console.
The final thoughts
Overall, the current ATVI's price of about $82 per share reflects a 50% probability of deal closing. That is close to my expectations. The upside to the buyout price is about 15%. Taking into account the possible timeline for the deal closing, mid-2023, this potential return does not look very lucrative.
Why Is Activision Blizzard Stock Down?
Sexual harassment is a serious allegation. When the CEO of a Fortune 500 company is involved, it’s all over the headlines. As a result, shareholders may look for an exit to avoid losses.
Stock Analysis
A lot is weighing on ATVI stock right now, erasing all Activision’s returns since the pandemic. Since the pandemic forced people to shelter inside, video games were a big business.
Can Activision Blizzard Stock Bounce Back?
It’s hard to predict exactly what will happen in the next few months. Thus several scenarios can happen with Activision blizzard stock, such as:
Is It Time to Buy Activision Blizzard Stock?
All in all, ATVI still has an incredible library of hit games. The company’s legacy is comparable to Disney’s but for gaming. If the company can overcome these new issues, it can play a lead role with the market set to reach nearly $400 billion by 2026.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime.
The gap between shares' current price and what Microsoft's offering looks too good to pass up
Collin Brantmeyer began writing for Fool.com in 2022. He is the author of DEATH OF A CAR SALESMAN, a novel that Indie Reader describes as "a page-turner that takes murder mystery lovers on a wild ride of descriptive scenes, clever dialog, and classic 'whodunit' moments."
The details
Microsoft has agreed to acquire Activision Blizzard for $95 per share in an all-cash deal. As of Tuesday, Jan. 25, Activision Blizzard shares were trading for $80, 18.75% below its acquisition price.
What could go wrong
In any acquisition, there is a possibility that the deal will not be approved by federal regulators, especially as big tech continues to draw ire from Congress. If the deal does fall through, few other suitors can afford Activision's $68.7 billion price tag, and you'll be left owning shares of a company plagued with scandal over the past year.
The bottom line
This isn't Microsoft's first go-around with big acquisitions and federal regulators. In 2016, Microsoft acquired LinkedIn for $26.2 billion. Interestingly, that deal was approved in six short months.
