As just announced, Microsoft is acquiring Activision Blizzard in a nearly $70 billion deal and therefore now owns Activision, Blizzard Entertainment and King, as well as the licenses of the studios in question, such as Warcraft, Diablo, Overwatch and Call of Duty. Find the official press release below.
Among the information to remember, the arrival of Activision Blizzard titles in the Game Pass (Console and PC). Bobby Kotick remains at the head of Activision Blizzard but the activities of the studio will be placed under the supervision of Phil Spencer.
With three billion people actively playing games today, and fueled by a new generation steeped in the joys of interactive entertainment, games are now the largest and fastest growing form of entertainment. Today, Microsoft Corp. (Nasdaq: MSFT) has announced its intention to acquire Activision Blizzard Inc. (Nasdaq: ATVI), a leading game developer and publisher of interactive entertainment content. This acquisition will accelerate the growth of Microsoft’s games business across mobile, PC, console and cloud and provide building blocks for the metaverse.
Microsoft will acquire Activision Blizzard for $95 per share, in an all-cash deal valued at $68.7 billion, including Activision Blizzard’s net cash. Upon closing, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. The proposed acquisition includes iconic franchises from Activision, Blizzard and King studios, such as “Warcraft”, “Diablo”, “Overwatch”, “Call of Duty” and “Candy Crush”, as well as global activities esports through Major League Gaming. The company has studios around the world and employs nearly 10,000 people.
Bobby Kotick will remain CEO of Activision Blizzard, and he and his team will continue to focus on efforts to strengthen the company’s culture and accelerate its growth. Once the transaction is completed, the activities of Activision Blizzard will be placed under the responsibility of Phil Spencer, CEO of Microsoft Gaming.
“Gaming is the fastest growing and most exciting category of entertainment on any platform today and will play a key role in the development of metaverse platforms,” said Satya Nadella, president and CEO of Microsoft. “We are investing deeply in world-class content, community and cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to everyone.”
“Gamers everywhere love Activision Blizzard games, and we’re confident the creative teams have their best work ahead of them,” said Phil Spencer, CEO, Microsoft Gaming. “Together, we will build a future where people can play the games they want, virtually anywhere they want.”
“For more than 30 years, our incredibly talented teams have created some of the most successful games ever,” said Bobby Kotick, CEO, Activision Blizzard. “Combining Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to games and inclusion will help to ensure our continued success in an increasingly competitive industry.”
Mobile is the largest segment of gaming, with nearly 95% of all gamers globally enjoying mobile gaming. With great teams and cutting-edge technology, Microsoft and Activision Blizzard will allow gamers to enjoy the biggest franchises, like “Halo” and “Warcraft”, virtually anywhere they want. And with games like “Candy Crush,” Activision Blizzard’s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment.
The acquisition also bolsters Microsoft’s Game Pass portfolio with plans to launch Activision Blizzard’s games in Game Pass, which has reached a new milestone with more than 25 million subscribers. With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three franchises worth billions of dollars, this acquisition will make Game Pass one of the most engaging and diverse gaming content lines in the industry. . Upon closing, Microsoft will have 30 in-house game development studios, along with additional esports publishing and production capabilities.
The transaction is subject to customary closing conditions, regulatory review and Activision Blizzard shareholder approval. The transaction is expected to close in fiscal 2023 and will be accretive to non-GAAP earnings per share at closing. The transaction has been approved by the boards of Microsoft and Activision Blizzard.
