Dear ATVI Stock Fans, Mark Your Calendars for April 28

Video game maker Activision Blizzard (NASDAQ:ATVI) is on investors’ radars today. On Thursday, owners of ATVI stock will vote on whether to approve Microsoft’s (NASDAQ:MSFT) $68.7 billion bid to acquire the company.

Quarantine May Not Move Activision Blizzard Stock the Way You'd Expect
Source: Lauren Elisabeth /

Additionally, Activision reported weaker-than-expected first-quarter results on Monday morning.

Activision’s board, which accepted Microsoft’s takeover bid earlier this year, has called on the owners of ATVI stock to back the offer. Although the online vote is technically “nonbinding,” the video game maker has said that the deal cannot proceed unless the proposal attains a majority vote. Typically, shareholders in such referendums have one vote per share.

What Is Happening With ATVI Stock?

If shareholders do not approve the deal, ATVI stock will likely “decline significantly” and Activision may ultimately decide to stay independent, the board warned.

The results of the referendum are expected to be announced on May 4, and Activision says an approved transaction will be wrapped up by June 30, 2023. A number of government regulators must approve the transaction.

Separately, Activision yesterday announced non-GAAP Q1 earnings per share of 64 cents, versus analysts’ average estimate of 71 cents. The company’s EPS also tumbled 35% year over year. Its Q1 revenue was $1.77 billion, $30 million below analysts’ mean estimate and representing a 22% YOY decline. Its operating cash flow dropped to $642 million from $844 million during the same period a year earlier.

Activision explained that, during Q1, there were “lower premium sales for Call of Duty: Vanguard versus the year ago title and lower engagement in Call of Duty: Warzone.”

On the date of publication, Larry Ramer 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 Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.

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