What Happens to My Activision Stock After Merger?
The merger between Microsoft and Activision Blizzard has finally closed, and many investors are now wondering what this means for their Activision Blizzard (ATVI) shares. The short answer is: if you held ATVI stock, you no longer own it. Instead, you should have received a predetermined cash payment. Let’s dive deeper into exactly what happened and address common questions surrounding this significant acquisition.
The End of ATVI Stock Ownership
Upon the completion of the merger, your Activision Blizzard shares were effectively converted into cash. As part of the agreement, Microsoft paid $95 in cash for each share of ATVI you held. This transaction meant that you no longer retained ownership in Activision Blizzard as a separate entity, nor do you have any stake in the newly combined Microsoft and Activision Blizzard operation. The cash payout would have been deposited into your brokerage account or the account you use for trading or holding stocks, depending on where you held your ATVI shares.
The merger, valued at $68.7 billion, marked the end of Activision Blizzard as an independent publicly traded company. The deal gives Microsoft a huge library of gaming franchises and studios, solidifying its position in the video game industry. So if you were an investor, you became a recipient of the merger payout and now have cash instead of shares in ATVI.
Frequently Asked Questions (FAQs)
Understanding the intricacies of mergers can be confusing, so here’s a comprehensive breakdown of frequently asked questions related to the Microsoft-Activision Blizzard merger and its impact on your investment:
1. What was the price Microsoft paid per share for Activision Blizzard?
Microsoft paid $95 per share in an all-cash deal for Activision Blizzard. This was a key component of the merger agreement and the basis on which shareholders received their payouts.
2. When did the merger officially close?
The merger officially closed on Friday, after receiving regulatory approval from the necessary bodies.
3. Where was the cash payout deposited?
The cash payment for your ATVI shares was deposited into the account that held your ATVI shares, typically your brokerage account. Check your account records to confirm receipt.
4. Why was ATVI stock trading below $95 before the merger closed?
ATVI stock traded below the $95 acquisition price because the market was factoring in the risk of the deal being blocked by regulators. This uncertainty led to a slight price difference from the offer.
5. What happened to the Activision Blizzard ticker symbol (ATVI)?
With the closing of the merger, the ticker symbol ATVI is no longer active on the stock market. Activision Blizzard is no longer traded as a separate entity.
6. Will I get Microsoft (MSFT) stock instead of cash?
No, the deal was an all-cash transaction. You will not receive MSFT stock in exchange for your ATVI shares. Instead, you received $95 in cash for each share of ATVI.
7. Will there be any stock split involved in the merger?
There was no stock split associated with the Microsoft acquisition of Activision Blizzard. You simply received the cash payment for your shares.
8. Does this mean I’ve lost money if I bought ATVI at a higher price?
If you bought ATVI stock at a price higher than $95 per share, you would have taken a loss when the merger closed, as you received $95 per share, regardless of your purchase price. The merger was priced at a fixed $95 payout.
9. Why did Microsoft want to acquire Activision Blizzard?
Microsoft acquired Activision Blizzard to gain access to major gaming franchises like Call of Duty, Diablo, Overwatch, and Warcraft, enhancing the Xbox Game Pass service and expanding its presence in the gaming market. The acquisition also brought in successful studios like Treyarch and Infinity Ward.
10. What is the significance of the Activision Blizzard acquisition for Microsoft?
The acquisition of Activision Blizzard is significant for Microsoft because it solidifies their position in the gaming industry by adding a large portfolio of popular games and studios. This will contribute to Microsoft’s gaming division’s revenue and subscriber growth.
11. What happens to Activision Blizzard employees after the merger?
Activision Blizzard CEO, Bobby Kotick, remained in his role through the end of 2023. While the integration process has started, details about broader restructuring and workforce decisions are still emerging.
12. What was the original announcement date for the acquisition?
Microsoft first announced its intent to acquire Activision Blizzard on January 18, 2022. This announcement significantly impacted the market, causing the ATVI stock price to jump.
13. Did the merger have any impact on the stock market?
Yes, the merger announcement caused a significant jump in the ATVI stock price in pre-market trading, nearly 40%. The completion of the merger also impacted the market as it removed a large player in the video game industry.
14. What is the long-term outlook for Activision Blizzard’s games now that Microsoft owns them?
Now that Microsoft owns Activision Blizzard, the future of its games is tied to Microsoft’s gaming strategy. The popular franchises are expected to be integrated further into Microsoft’s ecosystem, including Xbox Game Pass and cloud gaming.
15. Can I still buy Activision Blizzard stock?
No, you can no longer buy ATVI stock. With the merger complete, the stock is delisted and Activision Blizzard no longer exists as a publicly traded company. To invest in companies involved, you would have to invest in Microsoft or other video game companies.
The Final Word
The Microsoft acquisition of Activision Blizzard was a significant event that changed the gaming landscape and the financial markets. As a former ATVI stockholder, you have transitioned from an investor in Activision Blizzard to a cash recipient of the merger agreement. You should have already received your $95 per share payout. While ATVI stock is no longer something you can hold, understanding the details of this acquisition is essential. It’s important to stay updated on the industry’s changes as the gaming world continues to evolve.
By clarifying these frequently asked questions, you should now have a better understanding of what happened to your Activision Blizzard stock after the merger and what it means for your investment. If you had any investment in ATVI, you are now a recipient of $95 per share in cash and no longer hold shares in the company.