Acquisition of Activision Blizzard by Microsoft

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== Acquisition of Activision Blizzard by Microsoft ==

The acquisition of Activision Blizzard by Microsoft is a significant event in the video game industry. Announced on January 18, 2022, Microsoft revealed its plans to acquire Activision Blizzard, a leading game developer and publisher, for $68.7 billion. This acquisition is one of the largest in the history of the gaming industry and is expected to have far-reaching implications for the market.

Background

Activision Blizzard is known for its popular franchises such as Call of Duty, World of Warcraft, Overwatch, and Candy Crush Saga. The company was formed in 2008 through the merger of Activision and Vivendi Games. Over the years, Activision Blizzard has grown to become one of the largest and most influential companies in the gaming industry.

Microsoft, on the other hand, is a technology giant with a significant presence in the gaming market through its Xbox brand and Xbox Game Studios. The acquisition of Activision Blizzard is part of Microsoft's strategy to expand its gaming portfolio and strengthen its position in the industry.

Details of the Acquisition

The acquisition deal is valued at $68.7 billion, making it one of the largest acquisitions in the history of the gaming industry. Microsoft will pay $95 per share in an all-cash transaction. The deal is expected to close in the fiscal year 2023, subject to regulatory approval and other customary closing conditions.

Upon completion of the acquisition, Activision Blizzard will report to Phil Spencer, the CEO of Microsoft Gaming. The acquisition will bring popular franchises under the Xbox umbrella and is expected to enhance Microsoft's Xbox Game Pass subscription service by adding Activision Blizzard's extensive library of games.

Implications

The acquisition is expected to have significant implications for the gaming industry. It will likely increase competition between Microsoft and other major players such as Sony and Nintendo. The addition of Activision Blizzard's franchises to Xbox Game Pass is expected to attract more subscribers and strengthen Microsoft's position in the subscription-based gaming market.

The acquisition also raises questions about the future of Activision Blizzard's games on non-Microsoft platforms. While Microsoft has stated that it plans to honor existing agreements and keep some games available on other platforms, the long-term strategy remains uncertain.

Regulatory Scrutiny

Given the size and impact of the acquisition, it is subject to regulatory scrutiny. Antitrust authorities in various regions, including the United States, the European Union, and China, will review the deal to ensure it does not harm competition in the market. The outcome of these reviews will determine whether the acquisition can proceed as planned.

Related Pages

• Activision Blizzard
• Microsoft
• Xbox
• Xbox Game Studios
• Call of Duty
• World of Warcraft
• Overwatch
• Candy Crush Saga
• Phil Spencer
• Sony
• Nintendo