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Activision Blizzard Share Price Soars 35% on $68B Microsoft Takeover

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 18 Jan 2022

Key points:

  • Activision share price soars 35% premarket on acquisition from Microsoft
  • The deal marks the largest ever acquisition in the gaming industry, at a total of $68.7B
  • With Activision, Microsoft are well positioned for the future growth of the gaming landscape

In a landmark moment for the gaming sector, Microsoft announced today its planned acquisition of Activision Blizzard (NASDAQ: ATVI) – for a record amount of $68.7B, making it the largest deal in the sector, and bumping up Microsoft to the third-largest gaming company by revenue. 

Microsoft’s $95 per share offer will have been relished by Activision investors this morning; marking a 45% premium to Activision’s Friday closing price. Currently, ATVI stock is up around 35% in today’s premarket; putting a sharp end to a downtrend that has plagued Activision stock for the last 6 months. 

Read Also: Best Tech Stocks To Buy Now

Gaming is on the brink of a revolutionary change. As technology like the approaching metaverse continues to win the focus of large entertainment companies, it isn’t much of a surprise that Microsoft wants to be as well-positioned as possible, and with the acquisition of Activision Blizzard – the creator of the famed ‘Call of Duty’ games amongst many others – they are well situated to be a key influence in the changing gaming landscape.

Microsoft CEO Satya Nadella noted:

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms” 

The popularity of gaming, like many at-home entertainment sectors, surged over the pandemic. Yet with the looming metaverse and consistent advances in graphics chips and gaming apparatus, the industry doesn’t show any signs of slowing down.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.