What Will Happen to Activision Stock Holders?
Activision Blizzard’s acquisition by Microsoft has been a major topic of discussion in the gaming industry and among investors. As a result, many Activision stock holders are wondering what will happen to their investment. In this article, we will provide a comprehensive overview of what to expect in the coming months and years.
Merger and Acquisition
The $69 billion deal between Microsoft and Activision Blizzard was announced in January 2022. The acquisition is expected to be completed in calendar year 2023, subject to regulatory approvals. As of now, the deal is expected to be consummated by October 13, 2023.
Settlement for Activision Blizzard Shares
Upon the closing of the merger, each existing ATVI Common Share will be converted into the right to receive $95.00 net cash per share. This means that Activision Blizzard shareholders will receive a significant cash payout, approximately 3.3 times the stock’s current market price.
ATVI Options Settlement
Settlement in Activision Blizzard options will take place through OCC’s cash settlement system. This means that option holders will receive cash equal to the difference between the strike price and the post-settlement value of the shares.
Future of Activision Stock
With the acquisition, Microsoft is gaining access to Activision Blizzard’s impressive portfolio of games, including Call of Duty, Overwatch, Diablo, and World of Warcraft. Microsoft is confident that the acquisition will drive growth and revenue. As a result, Activision Blizzard’s stock is likely to remain volatile in the short-term, but with a strong foundation for future growth.
Stock Price Forecast for 2030
According to our stock prediction model, Activision Blizzard’s stock price is expected to reach $459.17 in 2030. This represents a significant upside potential for investors who hold on to their shares.
Is Microsoft Confident About Activision Deal?
Yes, Microsoft is confident that the acquisition will close. In an interview, the company’s Xbox Chief expressed confidence in the regulatory process and the ability to close the deal. Microsoft has committed to maintaining Activision Blizzard’s studios and game development teams, and has also pledged to prioritize Activision Blizzard’s games.
Should I Buy Activision Shares?
With the acquisition price reaching $95.00 per share, Activision Blizzard shares are considered overvalued. However, with the acquisition, Microsoft is likely to drive growth and revenue, making Activision Blizzard a potential long-term value play.
Table: Comparison of Current and Acquisition Price
| Current Price | Acquisition Price | |
|---|---|---|
| Cash Payout | N/A | $95.00 per share |
| Market Capitalization | $69 billion | N/A |
| Expected Growth | N/A | Strong growth potential |
In conclusion, Activision Blizzard stock holders can expect a significant cash payout, with each share converting into a $95.00 net cash payment. With the acquisition, Microsoft is likely to drive growth and revenue, making Activision Blizzard a potential long-term value play. However, investors should carefully consider the current market price and their overall investment strategy before making a decision.
Bullet Points: Key Takeaways
- Acquisition price: $95.00 per share
- Cash payout for Activision Blizzard shareholders
- Strong growth potential for Activision Blizzard
- Overvalued compared to current market price
- Microsoft is committed to maintaining Activision Blizzard’s studios and game development teams
- Regulatory approvals still required for the acquisition to close