So, I've noticed that Activision stock has gone down to $76.58 pre-market as of typing this. Microsoft is buying this company for $95/share. The deal is expected to close during Microsoft's 2023 fiscal year, ending in June of next year.
How is this not just a free +24% If I just buy this stock? Am I missing something here? Yes, I understand the deal will be reviewed by the FTC first but I find it extremely unlikely they'll block it. It's very hard to argue that this acquisition will create a monopoly. Within the console space Microsoft still has 2 strong competitors in Sony and Nintendo, and within the wider video game space there are still tens of other major publishers and many more smaller ones. They also let the much more egregious Disney-Fox acquisition through in 2019, so why would they block this one?
Are there any other huge risks I'm not seeing? It feels like this is as close as you can get to literally free money. I'm honestly extremely tempted to just go all in on this, 24% with this little risk seems almost too good to be true.
Leave a Reply