Will Activision sell to Microsoft?

To answer the question Will Activision sell to Microsoft?, the deal has been finalized, with Microsoft completing its $68.7 billion acquisition of Activision Blizzard, the publisher of popular games such as Call of Duty, World of Warcraft, and Diablo. This significant move confirms Microsoft’s commitment to expanding its presence in the gaming industry, particularly in the metaverse and cloud gaming sectors, and positions the company as a major player in the market, competing with other industry leaders like Sony.

FAQs about the Microsoft-Activision Deal

General Questions

1. What is the status of the Microsoft-Activision deal?: The deal has been finalized, with Microsoft completing its acquisition of Activision Blizzard for $68.7 billion.
2. Why did Microsoft buy Activision?: Microsoft acquired Activision Blizzard to further improve its presence in the gaming industry and the metaverse, and to consolidate itself as the de facto king of cloud gaming.
3. Is Microsoft paying cash for Activision?: Microsoft agreed to pay $95 in cash for each share of Activision Blizzard, valuing the deal at approximately $75 billion, inclusive of Activision Blizzard’s net cash.

Impact on Shareholders and Investors

4. What happens to my Activision stock when Microsoft buys it?: Activision stockholders will receive $95 for each share of Activision they owned prior to the close of the deal.
5. Should you invest in Activision?: Activision Blizzard currently has a Zacks Rank of #2 (Buy), indicating that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
6. Is Activision a buy right now?: Activision Blizzard has a consensus rating of Hold, with an average price target of $94.47, based on 21 Wall Street analysts’ 12-month price targets.

Details of the Acquisition

7. How much did Activision buy Blizzard for in 2008?: Activision announced that stockholders had agreed to merge, and the deal closed for an estimated transaction amount of US$18.9 billion.
8. How much will MSFT pay for ATVI?: Microsoft closed its $69 billion deal for Activision Blizzard, swelling its heft in the video-gaming market.
9. Is the Activision deal over?: Yes, Microsoft has finally closed its $69 billion purchase of Activision Blizzard, 633 days after announcing its bid.

Future Prospects and Ownership

10. Will Microsoft own Call of Duty?: With the acquisition, Microsoft now owns Activision Blizzard King and the Call of Duty franchise, but has stated it will not limit the experience on rival platforms.
11. Who owns COD?: Microsoft now owns the Call of Duty franchise as part of its acquisition of Activision Blizzard, but has committed to maintaining its availability across various platforms.
12. Is Activision in debt?: As of June 2023, Activision Blizzard carried US$3.61b in debt, roughly the same as the year before.

Market and Stock Performance

13. How high will Activision stock go?: The median estimate from 15 analysts offering 12-month price forecasts for Activision Blizzard Inc is $95.00, with a high estimate of $96.00 and a low estimate of $90.00.
14. Is Activision a hold or sell?: The consensus among Wall Street research analysts is that investors should “hold” ATVI shares, with 16 hold ratings and 4 buy ratings for the stock.
15. What is the 5-year forecast for Activision stock?: Based on forecasts, a long-term increase is expected, with the “ATVI” stock price prognosis for 2028-10-11 being $116.938 USD, representing a +23.85% increase over a 5-year investment period.