When one company announces the acquisition of another and there isn't much uncertainty about whether the deal will go through, there's usually little reason for investors to stick around. The stock of the acquired company soars, leaving at best a small gap between the stock price and the deal price.

Microsoft's (NASDAQ: MSFT) pending acquisition of video game giant Activision Blizzard (NASDAQ: ATVI) is not a normal acquisition. Investors were never all that confident that the company behind the Xbox would be able to successfully acquire the company behind Call of Duty and a host of other mega-franchises. Microsoft is set to pay $95 per share in cash if the deal goes through, but Activision stock currently trades right around $75 per share after fluctuating around $80 per share for much of this year.

It looks somewhat likely that the acquisition will be challenged by the U.S. Federal Trade Commission, so a gap between the stock price and the deal price is certainly warranted. But the size of the gap, and Activision's prospects if the deal falls through, makes the stock a compelling buy.

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Source Fool.com