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Activision Blizzard Inc ATVI

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Morningstar’s Analysis

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Activision Blizzard Purchased by Microsoft for $69 Billion; Expected to Close in 2023

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Microsoft plans to acquire Activision Blizzard for $68.7 billion or $95 per share in cash, a 45% premium to the target's Jan. 14 closing price. The deal would make Microsoft the third-largest video game company by revenue behind Tencent and Sony. For Activision Blizzard shareholders, we view the $95 price as fair, given our $92 fair value estimate and the ongoing challenges of the massive sexual harassment/misconduct scandal.

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Company Profile

Business Description

Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.

Contact
3100 Ocean Park Boulevard
Santa Monica, CA, 90405
T +1 310 255-2000
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Classic Growth
Employees 9,500

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