Microsoft deal with Activision

Submitted by Positive-Trifle3854 t3_11dz46s in wallstreetbets

What are some of your thoughts on this deal Microsoft is trying to close?

If the deal goes through Microsoft will buys out Activision shareholders for $95/per share. Activision shares currently go for around $76. That’s roughly give or take a 20% gain on your investment.

I hear the Microsoft Activision deal should be settled by summer 2023. I feel like this may be a good opportunity to load up on Activision shares however, I am relatively new to the stock market so some of your views on this topic would be greatly appreciated.

I’m assuming however, the downside of this opportunity may be that the deal does not execute and you are stuck holding on to crappy Activision shares which may potentially drop in value according to some analysis I came across on google.

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Balancedout-luck t1_jabr987 wrote

Sounds like a good idea, just don't get jacked to the tits on it

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Mrchickenonabun t1_jabw57r wrote

I’m buying the 90/95 call spread for 400% possible gainz

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Ill-Strength4570 t1_jackhao wrote

wouldn’t 95$ calls be worthless if the buyout price is 95$?

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fulldouche t1_jae08pj wrote

If it's a call debit spread, that's exactly the point - buy the 90, sell the 95 - provides a capped loss if things go to hell while maximizing gains if it goes through since as you pointed out that 95 sold call will expire valueless

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Mrchickenonabun t1_jae3ja3 wrote

Exactly, the 95c is really just to provide a discount in buying the 90c

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SirKelvinTan t1_jac90vq wrote

I don’t get why you wouldn’t want COD included as part of the deal

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netzure t1_jadzjsj wrote

I sold my Activision shares as I think the deal most likely isn’t going to get regulatory approval. I think it should, but the comments from regulators especially the UK CMA make me think it won’t.

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VisualMod t1_jablizr wrote

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Meat__Head t1_jadhii9 wrote

Is Sony still fighting against this deal?

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Tacocats_wrath t1_jadx8ab wrote

The longer it takes for approval, the more likely it is to fail. I'm thinking 80% chance it does not go through.

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VisualMod t1_jabljc4 wrote

>It's definitely a risky move, but if it pays off it could be a huge windfall. I would say go for it, but make sure you do your research first and know what you're getting into. There's no guarantee that the deal will actually go through, so there is some risk involved. But if you're comfortable with that then I say go for it!

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