2 Reasons Activision Shareholders Shouldn't Be Quick to Sell Ahead of a Microsoft Deal

Motley Fool2022-01-21

Microsoft's (NASDAQ:MSFT) proposal to buy top game publisher Activision Blizzard (NASDAQ:ATVI) is far from a done deal. On Tuesday, the software giant agreed to pay $68.7 billion, or $95 per share, in...

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Comments

  • Okie_cheong
    2022-01-23
    Okie_cheong
    Strong strong!!! 💪🏻💪🏻💪🏻
  • dahae
    2022-01-23
    dahae
    Q
  • Sing Options
    2022-01-23
    Sing Options
    The article seems to suggest a higher prob the deal would not be approved. If that is the case, should actually sell at the current price to lock in the profits as the stock would be expected to tank if deal fails; notwithstanding whether valuation is above or below intrinsic. The author should then buy back the shares at the lower price and wait for price to rise based on future growth. In my opinion, a better strategy would be to sell put at the 60 plus strike and collect premiums while waiting for the outcome of the deal. If deal goes through, keep premiums. If deal does not go through and price revert to 60 plus levels, get assigned the shares. Either way would be a desired outcome for the author. Cheers.Jiamu
  • Barbarazhao
    2022-01-23
    Barbarazhao
    Agree
  • Slee49
    2022-01-23
    Slee49
    Noted
  • R Lim
    2022-01-23
    R Lim
    Ok
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