Companies flush with cash proposed buyouts to accelerate their growth. Microsoft’s (MSFT) proposed acquisition of gaming firm Activision (ATVI) is one of three buyouts to watch.
The MSFT/ATVI deal faces delays. Microsoft had a pretrial meeting on Jan. 3. So far, Chile, Brazil, Serbia, and Saudi Arabia are in support of the deal.
Regulatory players have yet to support the deal. Watch the European Commission and the UK.
Amazon and iRobot
Amazon’s (AMZN) proposal to buy iRobot (IRBT) is in review. iRobot makes robotics. It also offers automated vacuums and floor cleaning. Its consumer product is not monopolistic once Amazon buys it out. Still, IRBT stock is trading as if the deal will not go through.
Jetblue (JBLU) is proposing to buy Spirit Airlines (SAVE). The bears are betting against the deal. The short float is 7.81%. The airline industry is on shaky ground since most firms have high debt.
The airline industry is highly unpredictable. The winter storm in North America hurt the sector during the most important period. Chances are low that the Jetblue/Spirit deal will close. If it does, the sector has major challenges ahead.
Conclusion
Activision’s discount on the $95 buyout is attractive. Consider betting that the deal will close.