Why Activision Blizzard Is Worth Buying Even After the Microsoft Acquisition
Should you hold onto your shares of Activision Blizzard (NASDAQ: ATVI) after the recent announcement that Microsoft (NASDAQ: MSFT) is acquiring the video game company for $68.7 billion? With shares currently trading more than 18% below its acquisition price, Activision Blizzard might not only be worth holding, but also buying.
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.
With the deal expected to close during Microsoft's fiscal year 2023 (July 2022 to June 2023), it may take anywhere from six to 17 months for investors to see that return. Even at the longer end of that timetable, investors would match the historical annualized performance of the S&P 500 return of 10.5%. But if the deal closes on the early end of the range, then shareholders will outperform the benchmark handily -- a common goal for investors.
Source Fool.com
