Activision Blizzard Heavy ETFs in Spotlight
Activision Blizzard ATVI shares experienced a significant boost on Jul 11, closing with a 10% increase, after a federal judge in San Francisco, denied the Federal Trade Commission's request for a preliminary injunction to halt Microsoft's acquisition of the gaming company.
According to CNBC, this surge propelled Activision Blizzard's stock to a 52-week high of $92.91 per share, marking the largest jump since the acquisition was initially announced on Jan 18, 2022. The closing price was also the highest since July 2021.
Investors can now turn their attention to ETFs with major exposure to ATVI to capitalize on the surge in the company’s shares. Investors should keep a close eye on the movement of— AltShares Event-Driven ETF EVNT, VanEck Video Gaming and eSports ETF ESPO, Global X Video Games & Esports ETF HERO and Fidelity Disruptive Communications ETF FDCF over the coming weeks.
Under the agreed-upon deal, Microsoft plans to acquire Activision Blizzard for $68.7 billion, valuing each share at $95. However, this acquisition has encountered opposition both within the United States and internationally due to concerns regarding potential competition suppression.
Still Hurdles Ahead?
The U.S. District Court for the Northern District of California ruled in favor of the companies involved, allowing the acquisition to proceed. Nonetheless, there are still hurdles to overcome. The Federal Trade Commission has the option to appeal the decision to the U.S. Court of Appeals for the 9th Circuit. Additionally, Microsoft and Activision Blizzard must find a resolution to address the opposition posed by the Competition and Markets Authority in the United Kingdom.
Focus on UK Decision
As per Reuters, Britain's Competition and Markets Authority (CMA), which had previously blocked the deal, expressed openness to Microsoft making changes to address their concerns. In response, Microsoft stated that it is considering modifications to the transaction based on CMA's feedback. This acquisition represents Microsoft's largest-ever deal and is also the largest in the history of the videogame industry. CMA's decision to block the deal in April was driven by worries regarding competition in the emerging cloud gaming sector.
ETFs in Focus
AltShares Event-Driven ETF (EVNT)
AltShares Event-Driven ETF has an exposure of 7.94% in ATVI, making it the fund with the highest exposure to the company. Employing an active strategy, the fund has gathered an asset base of $2.88 million and charges an annual fee of 1.53%.
AltShares Event-Driven ETF has earned 7.18% over the past year and 2.91% in the past month (as of Jul 11, 2023).
VanEck Video Gaming and eSports ETF (ESPO)
VanEck Video Gaming and eSports ETF has exposure of 7.09% to ATVI. The fund has amassed an asset base of $291.85 million and charges an annual fee of 0.56%.
VanEck Video Gaming and eSports ETF has earned 31.47% year to date and 2.96% in the past month (as of Jul 11, 2023).
Global X Video Games & Esports ETF (HERO)
Global X Video Games & Esports ETF has an exposure of 6.95% in ATVI. The fund has an asset base of $173.50 million and charges an annual fee of 0.50%.
Global X Video Games & Esports ETF has earned 10.55% year to date and 2.76% in the past month (as of Jul 11, 2023).
Fidelity Disruptive Communications ETF (FDCF)
Fidelity Disruptive Communications ETF has an exposure of 6.17% in ATVI. Employing an active strategy, the fund has gathered an asset base of $38.8 million and charges an annual fee of 0.50%.
Fidelity Disruptive Communications ETF has earned 33.45% year to date and 5.83% in the past month (as of Jul 11, 2023).
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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Global X Video Games & Esports ETF (HERO): ETF Research Reports
VanEck Video Gaming and eSports ETF (ESPO): ETF Research Reports
AltShares Event-Driven ETF (EVNT): ETF Research Reports
Fidelity Disruptive Communications ETF (FDCF): ETF Research Reports
