Microsoft acquires Activision Blizzard for US$68.7 billion.
Microsoft has taken the gaming world by storm by announcing the shock buyout of gaming industry giant Activision Blizzard. The buyout is reportedly worth US$68.7 billion, which will see Microsoft pay US$95 a share in cash.
Activision Blizzard, the publisher of games such as Call of Duty, Diablo, Overwatch and World of Warcraft, has been in the news recently after the company was accused of workplace harassment by employees, which led to massive company walkouts and drop in share prices.
Acquiring Activision Blizzard will see Microsoft become the third-largest gaming company in terms of revenue, behind only Tencent and Sony.
Even after Microsoft’s buyout of Activision, Bobby Kotick, the controversial CEO of Activision Blizzard, is set to continue on with his role. Kotick previously had been called upon to step down after it became evident that he had been aware of the harassment and discrimination at Activision but failed to act on it.
The deal, though, is pending regulatory review and approval from Activision Blizzard’s shareholders and is set to close in 2023. Till the deal is finalised, the two companies will operate independently, and post finalisation, Activision Blizzard will report to Microsoft Gaming CEO, Phil Spencer.
With almost 400 million monthly active players, the acquisition will help Microsoft’s gaming business. Microsoft will also acquire Activision’s global game studios and its nearly 10,000 employees.
The deal will help Microsoft’s cloud gaming project, and the company will hope to push the Xbox community onto phones, laptops and tablets worldwide now. Activision’s popular game Candy Crush will also help Microsoft’s stance on mobile gaming.
The deal will also help with Microsoft’s Xbox console, as Activision’s Call of Duty is one of the franchises that has gained worldwide popularity due to Xbox Live. Microsoft will hope the acquisition keeps building on for the other games too.
Speaking about the acquisition, Microsoft CEO, Satya Nadella, commented:
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.
“We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”
Bobby Kotick, CEO, Activision Blizzard, added:
“For more than 30 years our incredibly talented teams have created some of the most successful games.
“The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”
Phil Spencer, CEO, Microsoft Gaming, commented:
“Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them.
“Together we will build a future where people can play the games they want, virtually anywhere they want.”
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