With the news of $Microsoft (MSFT.US)$ acquiring them at $95...

$动视暴雪(ATVI.US)$ With the news of $Microsoft(MSFT.US)$ acquiring them at $95 per stock, it seems like a good investment right now, 30% profit when the transaction completes (the current price is $72.59).

This is called merger arbitrage (although the spread between share price and merger price is not that high usually).

If you invest now, and it gets approved - you will have a nice 30% profit as you said. However if it doesn't go through, a lot will dump the stock - and the shares will trade a lot lower in the short run.

The market wagers that there is a high chance, that it doesn't get through the anti-trust comitee. Microsoft is using it's cash flows from one monopoly and building another (Xbox, Gamepass). The transaction would make them the third biggest video game company in the world, that is also a publisher, plattform provider and hardware owner.

So it might go through, but the market prices the possibility in that it doesn't.