News business Microsoft-Activision: how much would it take to buy all the other video game publishers?
The news had the effect of an earthquake: Microsoft will acquire Activision-Blizzard for a crazy sum, around 70 billion dollars. It was enough to ask a question: if such a thing is possible, would it be feasible to buy all the other publishers?
“Money is everything”
First of all, a little throwback to the case that has been shaking the industry for a few days: to everyone’s surprise, Microsoft announced the acquisition of Activision-Blizzard, neither more nor less than one of the main publishers of the video game landscape, for the completely crazy sum of 68.7 billion dollars. As a result, iconic and hugely popular franchises like Call of Duty, World of Warcraft, Overwatch or Crash Bandicoot will indeed belong to Xbox, no offense to some.
Even if the acquisition will be recorded following regarding a year – until then, Activision will continue to work by offering its games on all media, a priori – it is an extremely strong gesture, occurring following the check for 7.5 billion to get their hands on Bethesda (The Elder Scrolls, Fallout), which had already impressed. A digital monster like Microsoft can therefore afford to break the bank (if it is barely cracked) to swell its ranks and try to impose itself very seriously once morest its competitors.
How much are other publishers in the industry worth?
This is Geoff Keighley, the host and founder of The Game Awards or Summer Game Fest, who shared some interesting information regarding Twitter by asking a question: given that Microsoft can afford to spend such sums, would it be possible to buy out the other major video game companies?
He thus listed the value in market capitalization of the big players in gaming, as follows:
- SHE : $38 billion
- Take-Two : $18 billion ($28 billion once the Zynga acquisition is complete)
- Nexon : $15 billion
- Bandai Namco: $15 billion
- Embracer : $10.8 billion
- Netmarble : $7 billion
- Ubisoft : $7 billion
- Konami : $6 billion
- Square Enix : $5.6 billion
- Capcom : $4.9 billion
- Sega : $3.6 billion
- Nintendo : $53.79 billion
If we add up the members of this list (which is not exhaustive either), this therefore amounts to a total of 130.9 billion dollars. However, as Keighley reminds us, it is important to specify an important fact: this is the market value and the actual purchase amount may trade well above it.
For example, the Activision-Blizzard group will be acquired by Microsoft 45% above its market capitalization, which therefore amounts to the final (and phenomenal) sum of $68.7 billion. And that’s already more than Nintendo’s value displayed in the list…
Do you think Sony will respond to Microsoft by also buying a major industry publisher?
Through Max_Cagnard, Journalist jeuxvideo.com
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