Activision Blizzard stockholders approved Microsoft’s proposal to acquire the gaming company for US$68.7 billion. This all-cash transaction values Activision at US$95 per share. However, the share price of Activision has not moved, staying at around US$77.
This could be because investors are worried that the FTC could pull the plug as the deal is still subject to regulatory review. Or just maybe... investors are more cautious since Elon Musk bid to buy Twitter for US$44 billion but pulled out at the end.
In today's episode, we discuss if there is an arbitrage opportunity in this Activision-Microsoft deal, the risk that it entails, and the likelihood of the deal going through.
