Microsoft buys Activision Blizzard for $68.7 billion

Microsoft Blizzard

Microsoft has acquired video game company Activision Blizzard for $68.7 billion in cash to “accelerate the growth of Microsoft’s gaming business on mobile, PC, console, and in the cloud, and provide building blocks for the metaverse” according to the statement. confirmed the company founded by Bill Gates and directed by Satya Nadella.

Microsoft will acquire the company for $95 per share, in an all-cash transaction that includes Activision’s net cash. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony.

The purchase includes iconic franchises from Activision, Blizzard and King studios such as ‘Warcraft’, ‘Diablo’, ‘Overwatch’, ‘Call of Duty’ and ‘Candy Crush’.

The transaction, still pending approval by Activision Blizzard shareholders , has been dated for 2023. At the moment, it has already been approved by the boards of directors of Microsoft and Activision Blizzard.

Following the purchase, Bobby Kotick will continue as CEO of Activision Blizzard. According to the statement, the Kotick team will “maintain its focus on driving efforts to further strengthen the company’s culture and accelerate business growth.” Once the deal is complete, Activision Blizzard’s business will report to Phil Spencer, CEO of Microsoft Gaming.

The purchase has been made with a significant focus on the mobile gaming segment. According to the statement, this platform welcomes “almost 95% of players around the world“. As a consequence, the agreement will allow gamers to enjoy the franchises “virtually anywhere”, according to Microsoft Gaming CEO Phil Spencer, which “represents a significant presence and opportunity for Microsoft in this fast-growing segment”, with games like ‘Candy Crush’.

The acquisition also bolsters Microsoft’s Game Pass portfolio with Activision Blizzard games. With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three $1 billion franchises, this acquisition will make Game Pass one of the most compelling and diverse lines of game content in the industry.”, the company estimated in the statement. Following the purchase, Microsoft will have 30 in-house game development studios, along with additional esports publishing and production capabilities.

Microsoft Chairman and CEO Satya Nadella said the deal is “to usher in a new era of gaming that puts gamers and creators first and makes gaming safe, inclusive and accessible to all.”

Likewise, the CEO of Activision Blizzard, Bobby Kotick, has emphasized “Activision Blizzard’s combination of world-class talent with technology, distribution, access to talent, ambitious vision and shared commitment to the game and the inclusion of Microsoft,” which will “help ensure” “continued success” in an “increasingly competitive” industry.