Microsoft ready to buy Activision Blizzard for $68.7 billion
For a total of $68.7 billion, Microsoft has revealed that it will purchase Activision Blizzard, a deal that will unquestionably be the most significant acquisition in the history of the gaming industry.
Microsoft – 3rd Largest Gaming Firm after Tencent and Sony
Following the announcement of the all-cash transaction by Microsoft today, both Microsoft’s gaming business Xbox and Activision have stated that they want to collaborate on future projects. According to Microsoft’s letter, after the purchase is completed, the firm will become “the world’s third-largest gaming company by revenue.” This will place it in the same league as Tencent and Sony.
Tencent is the Chinese gaming giant and is dominant over others for many years. PUBG was a major hit for this gaming company which gained its popularity. It is estimated that Tencent might remain the largest gaming company in the world ahead of Sony and upcoming gaming leader Microsoft.
Activision Blizzard Origin
To refresh your memory, Activision Blizzard is the parent company of Activision, a US-based video game developer known for games such as Call of Duty, World of Warcraft, Overwatch, and Candy Crush. Activision Blizzard is headquartered in Los Angeles, California. Activision is extremely well-liked by the gaming community as a result of the products it produces and the frequent eSports activities it organises.
The corporation today operates studios all around the world and employs over 10,000 people in the recording industry. Bobby Kotick, the CEO of Activision Blizzard, will remain in his position following the acquisition of the company. The company will continue to operate as usual, with a particular emphasis on boosting its commercial expansion. The Activision Blizzard business will be reported to Phil Spencer, CEO of Microsoft Gaming, who will oversee the company.
Estimation of Final Deal
According to Microsoft, the transaction is likely to be finalised within the fiscal year 2023. It has been authorised by the boards of directors of both Microsoft and Activision Blizzard, but it is subject to customary closing conditions as well as “the completion of regulatory scrutiny and Activision Blizzard’s shareholder approval,” according to the press release.
Microsoft emphasises that it intends to make a significant splash in the smartphone gaming area and that it will have Activision Blizzard on its side. It even suggests that franchises like Halo and Warcraft may be brought to mobile phones in the future. It hopes to capitalise on Activision’s previous success with mobile games such as “Candy Crush” to gain control of the mobile gaming industry.
Additionally, with the acquisition, Microsoft intends to broaden the range of games available through its Xbox Game Pass and PC Game Pass subscription services. Phil Spencer, the CEO of Microsoft, writes on the Xbox website that the firm will strive to introduce “as many Activision Blizzard titles” as possible to the two subscription services.
The success of Activision’s globally acclaimed franchises will also help Microsoft’s ambitions for Cloud Gaming to move forward. Using Microsoft’s numerous platforms, which will continue to be supported following the acquisition, it hopes to encourage “more individuals in more areas across the world to join in the Xbox community.”
