1,000 Reasons Microsoft Got a Bargain for Activision Blizzard
Microsoft's (NASDAQ: MSFT) $68.7 billion offer to buy leading game maker Activision Blizzard (NASDAQ: ATVI) has a long way to go to receive regulatory approval. But assuming it does, Microsoft could potentially be getting a great value for Activision.
The offer amounts to a price-to-earnings (P/E) ratio of 25 times Activision Blizzard's expected earnings for 2021. On the surface, that looks like a fair valuation -- but the potential for Microsoft to monetize 1,483 titles in Activision Publishing's game catalog going back to the 1980s would clearly make Activision more valuable in Microsoft's hands.
Here's why Xbox Game Pass and Activision's monthly active users are about to take a huge leap forward.
Source Fool.com
