Is buying a company which will be acquired by another company a no brainer?

stockerr

Newbie
Hi everyone

Recently Microsoft (MSFT) made a deal to acquire Activision Blizzard (ATVI) for 95USD a share - all cash deal.
ATVI today closed at 79.97USD.
As far as I understand when the acquisition from MSFT will be complete all the share holders of ATVI will receive 95USD for each share they hold. Am I right on that?
If my above assumption is correct then isn't buying ATVI at 79.97USD a no brainer since it is going to yield you around 19%?

I feel that I am missing something.

Thanks in advance
 

counter_violent

Legendary member
Hi everyone

Recently Microsoft (MSFT) made a deal to acquire Activision Blizzard (ATVI) for 95USD a share - all cash deal.
ATVI today closed at 79.97USD.
As far as I understand when the acquisition from MSFT will be complete all the share holders of ATVI will receive 95USD for each share they hold. Am I right on that?
If my above assumption is correct then isn't buying ATVI at 79.97USD a no brainer since it is going to yield you around 19%?

I feel that I am missing something.

Thanks in advance

There is normally something in the offering about shareholders on a certain date. The date of course will be historic as opposed to some future date. So if you are not a holder of shares on the date agreed in the deal, then there's nothing to be gained by purchasing shares after the deal has been agreed.
 

stockerr

Newbie
There is normally something in the offering about shareholders on a certain date. The date of course will be historic as opposed to some future date. So if you are not a holder of shares on the date agreed in the deal, then there's nothing to be gained by purchasing shares after the deal has been agreed.
Thanks for the reply. So I guess the next question is how you dig out this information. I tried to search the web about the details of the deal but couldn't find anything specific.
Let me know if anyone knows where to look.

Thanks
 

Rufus_Leakey

Well-known member
Thanks for the reply. So I guess the next question is how you dig out this information. I tried to search the web about the details of the deal but couldn't find anything specific.
Let me know if anyone knows where to look.

Thanks
I would guess if you own the ATVI shares before the deal closes (probably sometime in 2023), you will get the price Microsoft pays. The risk is if the deal doesn't happen (e.g., if regulators or shareholders fail to approve it), ATVI shares might fall.
 

new_trader

Legendary member
Thanks for the reply. So I guess the next question is how you dig out this information. I tried to search the web about the details of the deal but couldn't find anything specific.
Let me know if anyone knows where to look.

Thanks

For a publicly listed company the details are usually on their website in the investor relations area

 
S

Smith2525

Did it happen?? Still time??
 
 
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