Microsoft-Activision Blizzard deal: These 2 Rakesh Jhunjhunwala portfolios gaming stocks to benefit maximum from US biggest tech deal
Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzards net cash
Shares of gaming stocks such Nazara Technologies and Delta Corp held by billionaire investor Rakesh Jhunjhunwala were in action after Microsoft on Tuesday announced a $6900-crore deal to purchase US gaming giant Activision Blizzard. In the biggest tech deal, Microsoft will take over the studio behind hits like "Call of Duty" and Candy crush.
Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. The purchase is on 45% premium from Friday's closing.
With this deal, Microsoft will benefit from Sony Corporation's PlayStation, the makers of the popular Call of Duty and Candy Crush games, and its Xbox.
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US Biggest tech deals so far
This is the biggest tech deal in the history of the United States (US).
Previously, Dell-EMC deal was struck between the two companies for $6700 crore, while at $3700 crore and $3400 crore JDS-SDL and INM-Red Hat were the biggest deals earlier.
Which Indian gaming companies will be in focus?
Nazara Technologies, which is held by ace investor Rakesh Jhunjhunwala, is likely to benefit the most from Microsoft-Activision Blizzard deal. Nazara Technologies 41% income comes from its US market operations. Rakesh Jhunjhunwala holds over 10% stake in this gaming company, as pe BSE shareholding patterns of the company for the quarter ended September 30,2022. December shareholding patterns of the company was yet to be out. Meanwhile, shares of Nazara Technologies hit a 5 per cent upper circuit to Rs 2494.90 per share in the early trade on the BSE on Wednesday.
This can also help Delta Corp, another gaming and casino share held by Jhunjhunwala. It can also act as catalyst for Delta Corp's IPO. Delta Corp shares surged over 2 per cent to day's high of Rs 294.45 per share on the BSE after the development. As per December shareholding pattern of Delta Corp, Rakesh Jhunjhunwala has kept his position unchanged at 7.49% in the quarter ended December 2021.
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