Activision Blizzard, Inc. (ATVI) stock surged in the current market after the company announced that Microsoft had acquired them. ATVI was valued at $82.39 in the current market, gaining more than 26.01% from the previously closed value. At the end of the last trading session, ATVI closed at around $65.39. The stock volume traded in the previous trading session was around 11.62 million shares.
Reason for the ATVI stock gain
Activision Blizzard, Inc. (ATVI) announced in a press release today that Microsoft Corp. (MSFT) will acquire Activision Blizzard Inc. (ATVI). Activision Blizzard is a leader in game development and interactive entertainment content publisher. Microsoft will boost its growth with this acquisition across different gaming businesses like PC, console, mobile, and cloud to provide the foundation for the Metaverse.
Microsoft will acquire Activision Blizzard for $68.7 billion or $95.00 per share, all paid in cash. This valuation includes the net cash of Activision Blizzard. After the deal, It will make Microsoft the world’s third-largest gaming company in terms of revenue.
The current CEO of Activision Blizzard, Bobby Kotick, will continue his services at his current position. Along with his team, they will maintain their recent performance and focus on the growth of the business. When the acquisition is official, they will report to the CEO of Microsoft Gaming, Phil Spencer.
The transaction will complete by the fiscal year 2023. The boards of directors of both Microsoft and Activision Blizzard have approved the transaction.
Effect on the ATVI stock
The stock of ATVI gained significantly after the massive acquisition. The investors are responding positively to the significant development in the company’s timeline. With this acquisition, Activision Blizzard will come under the vast brand umbrella of Microsoft. It will also complement Microsoft, making it the third gaming giant, having a diverse gaming portfolio.
Conclusion
This acquisition will increase the market share of Microsoft. The stock of ATVI could increase significantly in the future following the acquisition. Microsoft is a seasoned player in the industry. Its expertise will raise Activision Blizzard to new heights.
