Why Activision Blizzard Stock Popped This Week

Unless you've been disconnected this week, you might have heard about Microsoft's (NASDAQ: MSFT) $68.7 billion all-cash deal to buy Activision Blizzard (NASDAQ: ATVI) at $95 per share. Shares of Activision were up 25.2% week to date as of 9:55 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence.

However, at Activision's current share price of $81.91, investors are placing an implied probability of 55% that the deal gets approval from regulatory bodies. If approved, the deal would make Microsoft the third-largest video game company in the world behind Tencent Holdings and Sony. It would have huge implications on Microsoft's future in the metaverse, cloud gaming, esports, and mobile-gaming ambitions.

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Source Fool.com