Microsoft buys ATVI. Who else benefits? Read & know.
I assumed that after covering $Microsoft(MSFT)$ last received approval to acquire $Activision Blizzard(ATVI)$ (see below), that would be the end of the story.
Microsoft a winning stock? Read & decide. Give a “like” after reading ok. Tks!
Am i mistakened! There is more to it than meet the eyes apparently (see below).
Based on Barron’s post dated Fri, 13 Oct 2023, there is an additional dimension to the story.
Here’s the skinny:
Microsoft completed its $69 Billion acquisition of Activision Blizzard, one of the largest videogame publishers in the world, with popular franchises such as Call of Duty, World of Warcraft, and Overwatch.
The deal boosted Microsoft's gaming portfolio and gave it more leverage in the cloud gaming market, where it competes with Google , Amazon and $Sony(SONY)$.
In the process, it also created a scarcity of large independent videogame publishers on the Nasdaq.
As a result, this benefited the shares of $Electronic Arts(EA)$ and $Take-Two(TTWO)$ — Activision Blizzard's two main rivals.
Take-Two owns franchises like [1] Grand Theft Auto, [2] Red Dead Redemption, and [3] NBA 2K.
While Electronic Art’s portfolio includes [1] Madden NFL, [2] EA Sports FC (soccer game formerly branded FIFA), [3] The Sims, and [4] Battlefield.
In the wake of Microsoft’s deal, the 2 competitors could attract more investors or potential acquirers for them.
Microsoft's success encourages other big tech companies to pursue more acquisitions in the gaming industry, which is expected to grow to $256 Billion (by 2025) from $180 Billion (2021).
According to Statista, the Compound Annual Growth Rate (CAGR) for the global gaming market is projected to be +7.7% from 2023 to 2027.
This “steady” growth is expected to lead to a market revenue size of US$532.97 Billion by 2027, up from 2023’s US$396.13 Billion.
Gaming’s worldwide projected users’ growth - see below.
Above diagram shows the different modes of gaming available.
I am paying attention to [1] Cloud gaming, [2] Mobile gaming, [3] Gaming live streaming and [4] Digital video games.
These 4 modes show the most upwards potential in their growth rates from present until 2027.
Like it or not, it coincides with the Top 10 companies related to the gaming industry (see below).
Above ranking is as of Q1 2023.
Of the 10 “listed” companies (not necessary in US exchanges), how many do you recognize?
More importantly, with rising potentials of Gaming Industry — are you in or out — to get a piece of the action & rewards?
Do you think there is/are potentials for gaming and gaming-related stocks?
Do you think all 10-mentioned stocks (and others) will benefit from gaming industry growth?
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YEP. Anyone can guess the interest rate and penalties on unpaid taxes of $28.9 billion? The IRS charges interest and penalties that a loan shark would love to have! This fact is goung to hit Microsoft sooner or later.
My friend is working for Activision and they are just waiting for the completion of the acquirement so much!
October MSFT Earning Report. As usual past, MSFT often posted positive Earning exceeding expectation of analysts. As a result, MSFT share price appreciates accordingly. Be patient. DON'T SELL
Don't under-estimate the powerful MSFT 221,000 employees, wide range of products & services have been in use world-wide. The U.S. gov is big customer, especially DoD. MSFT rises up sharply by the year end
Great ariticle, would you like to share it?
This stock is 11 times higher than when purchased in 2003. Do the math on that and then tell me what a dog MSFT is. Traders have a time horizon of about ten minutes. Investors sit back and enjoy the show. This is so darn scary!
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Microsoft overpaid for that game company by a factor of 10! Thats how you go from being prosperous to bankrupt!