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Deadline extended for merger agreement between Microsoft and Activision – t

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Deadline extended for merger agreement between Microsoft and Activision – t

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Latest Technology News: Deadline extended for merger agreement between Microsoft and Activision – t

What the options market is telling traders about the deal

  • The FTC had issues with Microsoft’s acquisition of Activision Blizzard, but the options market says the deal is still in the works.
  • Microsoft has reached an agreement with Sony to keep Call of Duty on Playstation consoles.
  • Microsoft’s acquisition proposal for Activision Blizzard is $68.7 billion in cash.
  • The acquisition agreement has been extended until October 18, 2023.

On July 11, 2023, ActivisionBlizzard (ATVI) shareholders rejoiced when Judge Jacqueline Scott Corley ruled against the Federal Trade Commission’s attempt to halt or terminate the Microsoft (MSFT) acquisition of ATVI. That left the tech giant free to acquire the company for around $68.7 billion in cash. ATVI stock fell from $82.56 to $92.91 intraday.

Activision ATVI Tip

Microsoft and Activision Blizzard Extend Contract Deadline to October 18, 2023

With the deal reportedly nearing completion, the two companies have decided to extend their deadline by a few months to remove regulatory hurdles and ensure that every little detail is taken care of. This hasn’t affected ATVI shares at all, as the company is still hovering between $90 and $95. The $68.7 billion acquisition cost would put the stock price around $95.

What the options market says about Activision Blizzard’s sale price

What I love about the options market is that we can get a lot of information just by looking at the extrinsic value and implied volatility numbers in each expiry cycle. For example, if a company has an estimated earnings announcement in August 2023, we can simply look at the stock’s weekly option expiration cycles to see where there is a spike in implied volatility and option premium. This is where the market rates the earnings announcement, although it’s not completely official.

With ongoing stock price acquisitions, we know there is an expected sale price. The stock may get closer to this expected sale price and float as the deal closes, but we can check the long-term expiry cycles to see if the market really thinks the deal will close.

If the market agrees, the deal will surely be done, long-term options contracts that would usually have a ton of extrinsic value could be worthless. If the market thinks there’s a chance the deal will fail, those long-term contracts will still reflect a good amount of extrinsic value in option premiums.

ATVI options

Looking at ATVI, it looks like the market is actually accepting the deal is done, and right around the $95 price point. The $92.5 strike is still trading for decent value, but there is a huge drop in the price of the $95 strike, implying a low probability event for the sell to be above $95 per share.

There is still some extrinsic value in options at $90 and below, although the markets are wide and inactive, which tells us that the deal is not yet 100% set. If the deal went through, none of those options around the stock price would be of much value. As we get closer to formalizing the deal, keep an eye on the prices of these options around the stock price. The lower the bid prices on these options, the more the deal is set in stone.

Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. It appears on Live Options Trading Concepts, broadcast Monday through Friday. @tradermikeyb

For daily live programming, market news and commentaryvisit tastylive or YouTube channels tastylive (for options traders), and Tendency for stocks, futures, forex and macro.

Trade with a better broker, open a tasty account Today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

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An Overview of Global Events in 2023

In 2023, the world witnessed a myriad of events that left a lasting impact on global affairs. From political developments and economic shifts to environmental challenges and breakthroughs in science and technology, the year was marked by significant changes and a sense of urgency for collective action. Here’s an overview of some of the latest world news in 2023.

Political Unrest and Diplomatic Strides:
In the political arena, several regions experienced unrest and geopolitical tensions. The ongoing conflict in the Middle East continued to dominate headlines, with efforts towards peace and stability remaining elusive. However, there were also moments of diplomatic breakthroughs as nations engaged in dialogues to ease tensions and work towards lasting solutions.

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Economic Transformations:
The global economy faced both challenges and opportunities. Trade disputes between major powers affected markets, while some countries grappled with debt crises. On the other hand, emerging economies showed resilience and promising growth, fueling optimism for a more balanced global economic landscape.

Technological Advancements:
Innovation surged forward in the tech industry, with breakthroughs in artificial intelligence, renewable energy, and space exploration. Quantum computing achieved milestones, promising radical transformations across industries. Renewable energy sources gained traction, with many countries setting ambitious goals to combat climate change.

Climate Crisis and Environmental Resilience:
As the climate crisis intensified, extreme weather events wreaked havoc in various parts of the world. Wildfires, hurricanes, and floods reminded humanity of the urgent need for climate action. In response, governments and communities across the globe doubled down on efforts to reduce carbon emissions, invest in sustainable infrastructure, and protect biodiversity.

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Health and Pandemic Management:
Health remained a global priority as countries continued to combat the COVID-19 pandemic. With the emergence of new variants, vaccination efforts and public health measures remained crucial to curbing the spread of the virus. There were also significant advancements in medical research and technology, offering hope for better preparedness in handling future health crises.

Sports and Cultural Milestones:
Amidst the challenges, the world found moments of joy and unity through sports and culture. International sporting events brought together athletes from diverse backgrounds, promoting solidarity and camaraderie. Cultural exchanges and celebrations showcased the richness of human diversity and fostered mutual understanding.

In conclusion, the year 2023 was a dynamic period filled with significant events that shaped the course of history. From political unrest to technological advancements and environmental challenges, the world witnessed the complexities of the global landscape. While obstacles remained, there were also encouraging developments and collaborative efforts towards a more sustainable, peaceful, and prosperous future for all nations. As we move forward, the lessons learned from these events serve as a reminder of the importance of collective action and cooperation to address shared global challenges.