By Nigam Arora & Dr. Natasha Arora
Congratulations! ATVI has become the 171st Arora Portfolio company to receive a buyout offer.
ATVI has received a buyout offer from MSFT. Here are the key points:
- ATVI was recently purchased at an average price of $58.33.
- The offer is from Microsoft.
- The offer is $95 cash.
- At the offer price, there is a gain of 62% in a short time.
- The stock is trading lower for three reasons
- There are antitrust concerns as after the close of the deal, MSFT will become the third-largest video gaming company after SONY and TCEHY.
- The deal is prompted by the potential of the metaverse. For those interested in the next-level information for investment opportunities in the metaverse, there is a series of seven podcasts available to Arora Ambassador Club members.
- The deal is accretive to MSFT earnings.
Long-time subscribers to The Arora Report have made a fortune from our propensity to recommend companies that get bought out. With 171 buyouts, this record is better than boutique research firms that charge upwards of $50,000 a year.
What To Do Now With MSFT Stock
Those in MSFT stock may consider continuing to hold.
Those not in MSFT stock may consider following the parameters given in the Core Model Portfolio.
What To Do Now With ATVI Stock
It is a matter of personal preference. For those holding the stock, there is a small risk of the deal not going through but the arbitrage spread is quite attractive. For tracking purposes, ATVI will continue to be held. For those who want to reduce risk, a good option is to take partial profits.
Those not in the stock may consider not buying at this time but focus on other recommendations.
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This post was just published on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
