Microsoft's Acquisition Of Activision: What's There For Investors

Spartan Capital
1.05K Followers

Summary

  • Microsoft will acquire Activision Blizzard in an all-cash deal valued at $68.7 billion.
  • If the deal closes, Microsoft will become the world's 3rd largest gaming company in terms of revenue.
  • I believe this deal has many synergies and will be highly accretive to Microsoft's gaming division.

Video Game Manufacturers Show Off Their Latest Products At Annual E3 Conference

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Thesis

I believe the Activision (ATVI) acquisition will be very accretive to Microsoft's (NASDAQ:MSFT) gaming division. By beefing up its content library with massive franchise names like Call of Duty and World of

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1.05K Followers
Industry-agnostic, special situations/GARP investor. My focus is on businesses that the market is significantly mispricing. This includes special situations and high-quality companies whose future growth is being undervalued. I look for companies with high normalized earnings yields and quality business models that possess high or growing reinvestment rates. My portfolio is typically highly concentrated on a few ideas that I know well.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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