Current situation:
- ATVI is trading at $77/share, which is +20% upside compared to Microsoft's $95/share acquisition price. According to both companies, the deal should close no later than June '23 and I expect it to be in early '23
- I have high conviction that the deal will go through given this due diligence so I don't really want this post to talk about whether or not the deal will close: My research on why ATVI is undervalued after Microsoft's acquisition : stocks (reddit.com)
- The stock market tanked in 1H '22 and it's really hard to say how the market will do for the rest of the year and 1H '23
Options:
- Over the next 6 – 12 months (until Microsoft closes the deal), I could either:
- get a low risk 20% return on my investment by buying ATVI shares
- I can either buy other stocks and it's not anywhere close to guaranteed because:
- Maybe I'll miss the boat on other buying stocks at low prices before they rocket
- Or maybe I buy stocks and they either keep going down or stagnate as the economy gets worse and I miss out on a low-risk 20% return from ATVI
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