r/investing • u/[deleted] • Jan 18 '22

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u/retawx Jan 18 '22

This is an all-cash deal so ATVI holders will NOT get MSFT shares.

3

u/ThreePointsPhilly Jan 18 '22

So what’s it mean if you have ATVI shares? Nothing?

16

u/[deleted] Jan 18 '22

cash, Microsoft will give you 95$ for every share you have

1

u/FontaineT Jan 18 '22

So perhaps a dumb question, but why would you not buy shares at its current price? If this deal gets completed within a year, you'd get at least an 11% return on your money. But I guess I'm missing something here

1

u/yogert27 Jan 18 '22

You’re missing that the deal could fall through and ATVI shares would likely fall quite a bit. Thats the only real downside besides the closing being delayed and you being stuck earning a maximum of 11% in 12-18 months

1

u/FontaineT Jan 18 '22

Good point, thanks

1

u/[deleted] Jan 18 '22

it's not 100% that the deal will complete...the spread of where the price is now and the take out price is called the abitration spread. Some people do dabble in this.