The video game world is facing a ton of consolidation as 2022 kicks off. Today, that trend is only getting stronger. Investors learned that Sony (NYSE:SONY) is acquiring Bungie, the maker of the popular Halo franchise, for $3.6 billion. Currently, SONY stock is up nearly 4% on the news.
Most of the time, a deal of this size would see the acquirer take a hit. However, given the ultra-bullish momentum in the market today, and the positive outlook investors seem to have on this deal from a synergy perspective, there’s a lot to like about this deal for both parties.
The initial take on this deal from Sony’s Chairman and CEO Kenichiro Yoshida sums up the deal nicely, “Bungie has created and continues to evolve some of the world’s most beloved videogame franchises and, by aligning its values with people’s desire to share gameplay experiences, they bring together millions of people around the world.”
Today, it appears investors agree with this view. Let’s dive into what’s getting investors so excited about this combination.
Investors Bullish on SONY Stock Following Bungie News
- Investors likely know that this $3.6 billion deal follows a string of video game acquisitions.
- Notably, recent acquisitions of Zynga (NASDAQ:ZNGA) by Take-Two (NASDAQ:TTWO) and Activision Blizzard (NASDAQ:ATVI) by Microsoft (NASDAQ:MSFT) are ones that have grabbed investor attention.
- Bungie is the maker of popular video game franchises Halo and Destiny.
- Microsoft previously acquired Bungie, but it split off again in 2007.
- Increased attention in the metaverse and augmented reality has investors bullish on tech and gaming consolidation.
- Therefore, this acquisition is one investors see as positive.
- Currently, Sony is valued at $137 billion, making this bolt-on acquisition one investors seem to like.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
