Activision Blizzard Intrinsic Stock Value – 2023: Activision Blizzard Shares Jump as UK Narrows Microsoft Deal Probe to Clear Merger.
March 25, 2023
Trending News ☀️
Shares of Activision Blizzard ($NASDAQ:ATVI), one of the world’s largest videogame makers, jumped after the UK’s Competition and Markets Authority (CMA) said on Wednesday that its investigation into Microsoft’s $69 billion purchase of the company had concluded that there were no serious issues to prevent the merger from going through. The CMA’s probe focused on potential antitrust concerns, such as whether the deal would reduce competition in the market. It is unclear what the CMA found in its investigation, but the authority said it was satisfied that the merger “does not raise any competition concerns” and that the proposed transaction will not adversely affect consumers. The clearance means that Microsoft can now move forward with its planned acquisition, which will make it one of the largest owners of a videogame publisher.
For Activision Blizzard, the news of a cleared investigation is a welcome development and signals a bright future for the company. The deal is expected to be a boon for shareholders, who have seen their stock jump almost 4% since Wednesday’s announcement. With the merger, Microsoft will now be able to leverage Activision Blizzard’s strong portfolio of gaming properties, including popular titles such as “Call of Duty” and “World of Warcraft.”
Market Price
On Friday, news of the UK Competition and Markets Authority narrowing a probe into Microsoft’s acquisition of Activision Blizzard‘s assets sent the stock of the gaming company soaring. Activision Blizzard opened at $84.8 and closed at $84.4, a rise of 5.9% from its previous closing price of 79.7. The news coverage surrounding the event was largely positive, with investors feeling more optimistic about the future of the company.
This is not the first time the stock has seen an increase in recent months. With the UK CMA’s decision to narrow its probe into Microsoft’s acquisition of Activision Blizzard’s assets, it looks like these predictions may be coming true. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Activision Blizzard. More…
| Total Revenues | Net Income | Net Margin |
| 7.53k | 1.51k | 20.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 2.22k | -4.99k | -534 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.38k | 8.14k | 24.54 |
Key Ratios Snapshot
Some of the financial key ratios for Activision Blizzard are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | -1.4% | 24.6% |
| FCF Margin | ROE | ROA |
| 28.3% | 6.1% | 4.2% |
Analysis – Activision Blizzard Intrinsic Stock Value
GoodWhale recently conducted an analysis of ACTIVISION BLIZZARD‘s wellbeing. Our proprietary Valuation Line method determined that the fair value of ACTIVISION BLIZZARD share is around $82.7. Currently, ACTIVISION BLIZZARD stock is being traded at $84.4, meaning that the stock is fairly priced but slightly overvalued by 2.1%. More…
Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.
– Electronic Arts Inc ($NASDAQ:EA)
Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
Summary
Investing in Activision Blizzard has been on the rise recently following news of the UK Competition and Markets Authority’s narrowed probe into Microsoft’s planned acquisition. This has cleared the way for the merger to go ahead and has sent stock prices soaring. Analysts suggest that this could be a good opportunity for investors looking to capitalize on the potential growth of the company. The long term outlook remains positive and investors should keep an eye out for further updates from both Activision Blizzard and Microsoft in the near future.
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