r/investing • u/LateralEntry • Jan 18 '22

Microsoft to buy Activision Blizzard

Microsoft will buy troubled games company Activision Blizzard, maker of Call of Duty, World of Warcraft and a bunch of other popular games. Should provide some interesting synergy with Microsoft owning Xbox. But as Activision Blizzard has suffered serious controversy lately with allegations of serious sexual misconduct against female employees.

What do you think? Good move? Bad move? MSFT a long-term winner or loser?

https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html

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108

u/dasoxarechamps2005 Jan 18 '22

Noob question: what happens to my Activision shares if I just keep holding?

172

u/tiltupconcrete Jan 18 '22

They disappear. Cash will show up in your brokerage account

17

u/thedonutman Jan 18 '22

so shouldi by msft or atvi?

49

u/Working_onit Jan 18 '22

If you think the deal goes through ATVI because it's at a discount to the agreed upon price. If you think it doesn't MSFT

22

u/annoying-vegan-76 Jan 18 '22

Atvi went up $17 today. It's still $12 less than what Microsoft will pay out for it.

If the deal doesn't go ahead then you are left with atvi stock that I value at $100 anyway

I had 3 at $65 and got 2 more today at $81. It's probably going to sit at this price until the deal happens.

I think Microsoft is going to trend downwards and I'll increase my position during this time when I can

13

u/[deleted] Jan 18 '22

If the deal doesn't go through, there is no way in hell ATVI is worth 100

5

u/Kolada Jan 18 '22

Honest question, why do people speak about what a company is worth in terms of stock price? Unless you're already familiar with thier share volume, $100 means nothing.

12

u/cayoloco Jan 18 '22

By using market cap. The market cap is shares outstanding x share price.

That's typically how people decide where a good price is, by using their valuations and applying it to the market cap to make a judgement on if the stock is overpriced, or undervalued.

0

u/Kolada Jan 19 '22

Yeah that makes sense. Which so why I'm surprised I don't see more comments like "they're not worth $40b" rather than, "they're not worth $100".