Activision Blizzard shares surge on Microsoft merger news

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Activision Blizzard ($NASDAQ:ATVI) is a leading video game company with a portfolio of some of the most popular franchises in the industry. The company’s shares surged on news that Microsoft is in talks to acquire the company. Microsoft is reportedly interested in acquiring Activision Blizzard in order to bolster its position in the video game industry. The deal would give Microsoft ownership of some of the most popular video game franchises, including “Call of Duty” and “World of Warcraft.” Activision Blizzard is trading at around $72 per share, and Microsoft has a merger agreement to acquire the company at $95 per share.

This means that there is a 32% upside to the deal price. Investors are bullish on the news, as it would give Microsoft a stronger foothold in the rapidly growing video game industry. The deal would also be a positive for Activision Blizzard, as it would give the company access to Microsoft’s vast resources.

Share Price

On Friday, shares of Activision Blizzard surged on news of a potential merger with Microsoft . At the time of writing, media sentiment mostly remained positive on the news. ACTIVISION BLIZZARD stock opened at $72.5 and closed at $72.8, up by 0.5% from its previous closing price of $72.5. The positive reaction from investors came as a surprise, as the deal would likely mean that Microsoft would take control of one of the largest game publishers in the world.

However, it remains to be seen if the deal will actually go through.

VI Analysis

Activision Blizzard is a medium risk investment according to VI’s Risk Rating. This rating takes into account the company’s financial and business aspects. Two risk warnings have been detected in the income sheet and balance sheet. However, the company’s fundamentals reflect its long term potential.

VI 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

Activision Blizzard is one of the world’s largest video game publishers. It owns some of the most popular franchises in gaming, including “Call of Duty,” “World of Warcraft,” and “Overwatch.” The company has been growing steadily in recent years, thanks to strong sales of its popular franchises. Its stock price has more than doubled in the past five years. Investors are attracted to Activision Blizzard because of its strong track record of creating successful video games. The company has a proven ability to generate revenue from its franchises, and it has a large and loyal player base. The company is also well-positioned for future growth, as the video game industry is expected to continue to grow in the coming years. If you’re considering investing in Activision Blizzard, it’s important to do your research and make sure you understand the risks involved. The stock market can be volatile, and the video game industry is subject to changing trends.

However, if you’re comfortable with these risks, Activision Blizzard could be a good long-term investment.