Activision Blizzard Stock: Is Waiting for the Microsoft Buyout too Risky Now?

By Jason Hall and Travis Hoium – Nov 11, 2022 at 10:40AM

NASDAQ: ATVI

Activision Blizzard

There's still a lot of money on the table based on the buyout price versus today's trading price. But that's because there's risk regulators won't approve the deal.

Activision Blizzard (ATVI) shareholders are in line to get $95 per share from Microsoft (MSFT 0.37%) next year if the deal to be acquired is approved by regulators. But many investors don't expect regulators to let it happen, which is why Activision shares trade for a nearly 25% discount to the buyout price. In this video, Motley Fool contributors Jason Hall and Travis Hoium break down the risks if the deal falls through, and why some investors might want to take the discounted price and sell now.

*Stock prices used were the after-hours prices of Nov. 7, 2022. The video was published on Nov. 10, 2022.

Activision Blizzard shares trade for a huge discount to the $95 Microsoft has agreed to pay next year, indicating that investors don't think regulators will approve it.

Should shareholders sell now or wait it out?
-- The Motley Fool (@themotleyfool) November 11, 2022

Jason Hall has no position in any of the stocks mentioned. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard and Microsoft. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.