Why I Still Like The Microsoft Activision Blizzard Deal


  • The Microsoft/Activision Blizzard deal spread remains wide as the anti-competition reviews continue.
  • The acquirer, Microsoft, filed a response to the FTC’s lawsuit.
  • Microsoft/ATVI have offered Call of Duty to competitors and maintain the deal isn’t intended to be anti-competitive in nature.
  • This is in line with past practices under Microsoft CEO Satya Nadella.
  • The dealing parties seem to have a solid position in my opinion.

Gamescom 2019 Press Day

Lukas Schulze

Microsoft Corporation (NASDAQ:MSFT) has offered $95 per share of Activision Blizzard, Inc. (NASDAQ:ATVI). Because there are antitrust concerns, ATVI trades at $75.79. If the deal closes, that’s 25% of upside from here on out. The deal was initially announced in

Data by YCharts

price target vs analyst target

price target vs analyst target (Seeking Alpha)

Disclosure: I/we have a beneficial long position in the shares of ATVI 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.

Additional disclosure: Coincidentally I have a MSFT short position on but that idea is not related to this deal.

I write the Special Situation Report. I look at special situations like spin-offs, share repurchases, rights offerings and a lot of M&A events. The point is to make money with risks under control. Check it out here. Follow me on Twitter here

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