Impact of transaction characteristics on M&A premia and acquirer returns in public takeovers: a study in Europe and North America

Freude, Maximilian

http://hdl.handle.net/10362/204147

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Autores

Freude, Maximilian

Orientador(es)

Gavrilova, Ekaterina

Resumo(s)

This work project determines the fair value of Activision Blizzard, Inc., one day before the acquisition announcement by Microsoft Corporation on January 18, 2022. The valuation, encompassing various intrinsic methods, including a synergies analysis, comparable companies and transactions analyses, and a sum-of-the-parts valuation, suggests that Microsoft Corporation overpaid for the acquisition of Activision Blizzard, Inc. For Microsoft Corporation to generate value for its shareholders, significant synergies must be realized from this acquisition. Moreover, the work project presents three distinct regression analyses on public M&A transactions in Europe and North America, focusing on the determinants of M&A premia and the cumulative abnormal returns (CAR) for targets and acquirers around the acquisition announcement. The first analysis indicates a significant relationship between the corporate social responsibility score and both the M&A premia and CARs. The second analysis suggests that increased innovativeness of high-technology companies is associated with higher M&A premia and CARs. The final analysis shows a significant influence of the pre-announcement share price development and insider offers on M&A premia and CARs.