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

[stockerr]

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]

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]

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]

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]

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

Activision Blizzard | Investor Relations

The Investor Relations website contains information about Activision Blizzard's business for stockholders, potential investors, and financial analysts.

investor.activision.com

 

[stockerr]

thanks for your help

 

[Smith2525]

Did it happen?? Still time??

 

[Henow1969]

I think it would be a good deal for share holders.

 

[LuckyMac]

Definitely a positive and then it is also re inforced by the bigger company and thus more stable

 

[Jungletrader]

I'd say so should mean they have access to more funding from the new owners

 

[Resolve]

I'd say so should mean they have access to more funding from the new owners

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