I agree with you both, and I just do not understanding why people buy stocks above today's value(or future value). What you want to do is buy stock at today's value ($100) so you can sell it in the future 10 years from now at $250. What they are doing is buying it today at its expected value in 10 years ($250) and then they expect it to starting rising now!? Which puts ridiculous pressure on the management. Logically, if you paid $250 NOW in 10 years it would be still $250 because it has finally hit its real value.
But going to this specific deal, Microsoft did indeed buy Activision for $70B meanwhile they could have bought the whole of Nintendo for $56B. Giving its strong history, Nintendo seems like a much lucrative-and stable- investment (unless the Switch will be their swan song and turn into a Sega).
@MrPoPo
your signatures says your work for Blizzard. Are you allowed to talk about the deal? Whats your views on this?