How much is Microsoft buying Activision for per share?

Microsoft is buying Activision for $95 per share, as part of its $68.7 billion all-cash deal to acquire the renowned video game developer. This significant acquisition has sent ripples through the gaming industry, with Activision Blizzard‘s stock price jumping nearly 40% in pre-market trading on the day of the announcement.

Frequently Asked Questions

General Questions

1. What is the total value of the Microsoft-Activision deal?: The total value of the deal is $68.7 billion, with Microsoft acquiring Activision Blizzard in an all-cash transaction.
2. How will the acquisition affect Activision stockholders?: Activision stockholders will receive $95 for each share of Activision they owned prior to the close of the deal.
3. What will happen to Activision shares after the acquisition?: All holders of ATVI will receive $95.00 in exchange for each ATVI share held at the close of trading, and ATVI will cease trading on the Nasdaq Exchange.

Microsoft and Activision

4. Why is Microsoft buying Activision?: Microsoft is buying Activision to expand its presence in the gaming industry, gaining access to popular franchises like Call of Duty, Overwatch, and Diablo.
5. How will the acquisition benefit Microsoft?: The acquisition will give Microsoft a significant boost in the gaming market, allowing it to better compete with industry leaders like Sony.
6. What is the current status of the Microsoft-Activision deal?: The deal has been completed, with Microsoft closing its $69 billion acquisition of Activision Blizzard.

Stock Performance and Forecast

7. Why is Activision stock not trading at $95?: Activision stock is trading below $95 due to investor concerns that the deal might be blocked by global regulators.
8. Should I buy Activision shares?: According to Zacks Rank, Activision Blizzard has a rank of #2 (Buy), indicating a potential for growth.
9. What is the average price target for Activision stock?: The average price target for Activision stock is $94.44, with a high forecast of $96.00 and a low forecast of $90.00.

Regulatory Approval and Completion

10. Did Microsoft face any regulatory issues with the Activision deal?: Yes, the deal faced opposition from regulators, but Microsoft has completed the acquisition after addressing concerns and gaining approval.
11. How long did the Microsoft-Activision deal take to complete?: The deal took 21 months to complete, with Microsoft announcing its completion on October 13, 2023.
12. What was the final hurdle for the Microsoft-Activision deal?: The final hurdle was the approval from the U.K. regulator, which was granted after Microsoft restructured the deal to address concerns.

Future Prospects and Ownership

13. What will happen to Activision’s gaming franchises after the acquisition?: Microsoft will gain control of popular franchises like Call of Duty, Overwatch, and Diablo, which will be integrated into its gaming portfolio.
14. Who owns the most Activision stock?: The largest shareholders of Activision include Fmr Llc, Wellington Management Group Llp, and Vanguard Group Inc.
15. Will Activision stock split after the acquisition?: Activision’s Board of Directors has approved a two-for-one stock split of its outstanding shares, which will be effected in the form of a common stock dividend.