How much is Activision stock takeover?

How Much is Activision Stock Takeover?

In a historic deal, Microsoft has completed its $69 billion takeover of Activision Blizzard, the maker of popular video games like Call of Duty and Candy Crush. The acquisition is the largest in the gaming industry’s history, catapulting Microsoft into a leading spot in the $175 billion gaming market.

The Deal

Microsoft agreed to buy Activision Blizzard for $95 per share, a significant premium over the company’s pre-announcement stock price. The deal was announced in January 2022 and was completed on February 10, 2023, after receiving regulatory approvals from various countries.

Why the Takeover?

The takeover is a strategic move by Microsoft to expand its gaming business and increase its presence in the market. Activision Blizzard is a leading game developer and publisher, with a portfolio of popular franchises like Call of Duty, World of Warcraft, and Overwatch. The acquisition will give Microsoft access to Activision Blizzard’s vast library of games, as well as its talented development team.

What Does it Mean for Investors?

The takeover has significant implications for investors, including:

  • Stock Price: The stock price of Activision Blizzard has increased significantly since the announcement of the takeover, reflecting the value of the deal.
  • Dividend Yield: Activision Blizzard has a dividend yield of around 0.5%, which is lower than the industry average.
  • Growth Potential: The takeover is expected to drive growth for both companies, as Microsoft’s resources and expertise will help Activision Blizzard to develop new games and expand its reach.

Is Activision a Hold or Sell?

According to 20 Wall Street analysts, there are currently 16 hold ratings and 4 buy ratings for Activision Blizzard. The consensus among analysts is that investors should "hold" ATVI shares.

Is ATVI Overvalued?

According to AlphaSpread, Activision Blizzard is overvalued by 30% compared to its current market price of $94.42.

What Does it Mean for Gamers?

The takeover has significant implications for gamers, including:

  • New Games: The acquisition will give Microsoft access to Activision Blizzard’s vast library of games, which will be available on Microsoft’s Xbox and PC platforms.
  • Cross-Platform Play: The takeover will enable cross-platform play between Xbox and PC players, allowing gamers to play together seamlessly.
  • New Features: The acquisition will give Microsoft the opportunity to develop new features and services for its gaming platforms, such as cloud gaming and virtual reality.

Conclusion

The takeover of Activision Blizzard by Microsoft is a significant event in the gaming industry, with far-reaching implications for investors, gamers, and the industry as a whole. The deal is expected to drive growth for both companies, and will give Microsoft a leading position in the gaming market.

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