Activision a buy ahead of Microsoft acquisition?

Any reason why $ATVI isn’t a buy?

Trading roughly 20% below ($75.60 Fridays close) the announced purchase price of $95 a share from the $MSFT acquisition. Berkshire Hathaway $BRKA has taken a 9.5% stake in Activision Blizzard worth about $5.6 billion, up from their 2% stake in December.

Microsoft announced plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction on Jan. 18, 2022. Estimated close of the proposed transaction is expected in Microsoft’s fiscal year ending June 30,2023. Warren Buffett said Berkshire will file a report with regulators if the stake reaches 10%.

“If the deal goes through we make some money, and if it doesn’t go through who knows,” Buffett said. “But if we do file that report, understand very clearly, it was Warren Buffett’s decision, and he doesn’t know what the Justice Department will do.”

ATVI Quarterly Free Cash Flow
Activision Blizzard
Market Cap: $58.91b
PE (FWD): 21.74
PE (TTM): 21.98
Price To Sales (TTM): 6.69
EV To EBITDA (TTM): 17.44
Price to Book (TTM): 3.304
Profit Margin: 31%
Operating Margin (TTM): 38%
Quarterly Earnings (YoY): 11%
Quarterly Revenue (YoY): -10%
Cash: $10.42b
Debt: $3.61b
Net: $6.82b
Dividend Yield: 0.62%
Payout Ratio: 13.66%
Ex-Div Date: Apr 13, 2022
Payout Date: May 6, 2022


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