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.
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.
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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.