Microsoft is set to turbocharge its gaming empire by acquiring Activision Blizzard, the gaming behemoth behind icons like “Warcraft”, “Diablo”, “Overwatch”, “Call of Duty”, and “Candy Crush”. Announced on January 18, 2022, this $68.7 billion mega-deal, an all-cash affair at $95.00 per share, is aimed at catapulting Microsoft to new heights in the $200+ billion gaming industry, making it the world’s third-largest gaming firm by revenue, behind Tencent and Sony.
As three billion people dive into the world of games, Microsoft plans to leverage Activision Blizzard’s prowess in game development to broaden its gaming landscape across mobile, PC, console, and cloud, while setting the stage for the emerging metaverse.
Activision Blizzard, known for its world-class talent, outstanding franchises, and global eSports activities through Major League Gaming, houses almost 10,000 employees across its worldwide studios. The company’s CEO, Bobby Kotick, will continue in his role, steering the ship towards further growth and cultural strengthening.
The proposed deal, which promises a buffet of iconic franchises to Microsoft’s Game Pass subscribers, has now reached a landmark of over 25 million. With Activision Blizzard boasting nearly 400 million monthly active players, the acquisition will significantly boost the diversity and appeal of the Game Pass offering.
The two powerhouses believe this unison will revolutionize the gaming industry by offering players immersive experiences on virtually any device, anywhere, anytime. Microsoft’s Satya Nadella highlights gaming’s pivotal role in the metaverse, with an increased emphasis on inclusivity, accessibility, and safety.
As the transaction awaits regulatory review and shareholder approval, the closing is expected in fiscal year 2023, with a promising impact on non-GAAP earnings per share. A webcast discussing the deal will be hosted by key representatives of both companies.
This acquisition underlines Microsoft’s continued dedication to digital transformation, aiming to empower every person and organization in the intelligent cloud and intelligent edge era. On the other hand, Activision Blizzard reiterates its mission to connect and engage the world through epic entertainment, celebrating diversity, and fostering social connections through competitive gaming.
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