The deal came as no surprise to the Redmond tech giant’s investors, and Activision Blizzard is better off than ever.
In recent months, Activision Blizzard has been in the headlines on Wall Street because of doubts about its management, its stock market valuation has been falling steadily, but recently it has been slowly recovering. Now, news of the company’s sale to Microsoft has sent the share price soaring 27.53%, up over 30% in the first minutes of yesterday afternoon local time.
The share price was also up over 30%
Microsoft, for its part, is holding its numbers steady for the time being, which could be seen as a reassuring message to investors about the purchase.
Deals with such big numbers do not usually generate much excitement on Wall Street about the financial future of acquiring companies. The best counter-example could be the Take-Two Interactive acquisition of Zynga, which led to a significant fall in the Nasdaq index in New York.
According to The Wall Street Journal, the deal between Activision Blizzard and Microsoft is worth $68.7 billion (€60.5 billion at current exchange rates), unprecedented figures in the video games industry, almost ten times the amount the technology company paid for Bethesda.
According to Bobby Kotick, Activision’s acquisition of Blizzard is expected to close before June of the next fiscal year if all goes according to plan.