With Microsoft's Activision Blizzard Merger Cleared, Is Electronic Arts Stock a Buy?
The $69 billion merger between Microsoft and Activision Blizzard is one big step closer to completion. Earlier this month, a federal judge in California struck down the Federal Trade Commission's attempt to block the deal ahead of its July 18 deadline. As a sign of confidence that it can close the deal, the two companies extended the acquisition contract's deadline to Oct. 18 to allow more time to win regulatory approval in the U.K., which has yet to give a thumbs up on the merger.
The potential completion of the Microsoft-Activision deal just became a catalyst for Electronic Arts (NASDAQ: EA). Shares of Take-Two Interactive and Electronic Arts were moving higher after the news. Here's why Electronic Arts stock looks particularly appealing right now.
EA trades at a substantial discount to Activision. While the latter currently trades at a price-to-sales (P/S) ratio of 9, EA's P/S ratio of 5 looks cheap. A buyout offer for EA would undoubtedly come at a substantial premium to its current share price.
Source Fool.com
Activision Blizzard Inc. Aktie
Noch keine klare Meinung: Activision Blizzard Inc. mit nur einigen Buy- und Sell-Einschätzungen.
Das Kursziel von 89 € liegt unter dem aktuellen Kurs von 89.7 € für Activision Blizzard Inc., führt aber zu einem negativen Potenzial von -0.78%.
