Why Activision Blizzard Stock Gained 17% in the First Half of 2022

Shares of gaming company Activision Blizzard (NASDAQ: ATVI) gained 17% in the first half of 2022, according to data provided by S&P Global Market Intelligence. That's a sweet gain considering the S&P 500 fell more than 20% over the same time frame. It's all due to its anticipated acquisition by Microsoft (NASDAQ: MSFT), which is expected to go close sometime next year.

The digital landscape is shifting, and many companies are changing gears to capture market share in developing categories. Streaming company Netflix, for example, announced its foray into gaming as its lead in streaming narrows. Microsoft is also looking to increase its presence in this space, and acquiring a successful gaming company is one way to do that. In January, Microsoft announced that it will acquire Activision Blizzard for $95 per share, or about a 40% premium above the stock's price at that time, to close in 2023. Shares of Activision jumped on the news. There are limited opportunities where you know you'll gain 40% on your stock purchase in one year.

However, Activision itself hasn't posted strong results recently. If the deal doesn't go through, investors might be left with high-priced shares of a low-performing company.

Source Fool.com