HomeeSportsMicrosoft’s Activision Blizzard Purchase Could be Historical

Microsoft’s Activision Blizzard Purchase Could be Historical

Microsoft’s Activision Blizzard Purchase Could be Historical

Microsoft is in the process of buying Activision Blizzard for $68.7 Billion, the largest gaming company acquisition in history.

With studios across the world, Activision Blizzard has over 10,000 staff and are the creators behind some of the most popular games such as Call of Duty and Candy Crush.

Microsoft chief executive, Satya Nadella, said: “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”

Buy acquiring Activision Blizzard, Microsoft will expand their metaverse and make them the world’s third largest gaming company.

Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth.

Once the deal closes, the Activision Blizzard business will report to Microsoft Gaming CEO, Phil Spencer.

Aptus Capital Advisors equity analysis and portfolio manager, David Wagner, said: “This is a significant deal for the consumer side of the business and more importantly, Microsoft acquiring Activision really starts the metaverse arms race.”

Since the announcement of the deal, Activision’s shares have increased by 26% to $82.10.

Over the last couple of years Microsoft have been making their way up through the gaming universe with their gaming market shares increasing from 6.5% in 2020 to 10.7 % after the acquisition of Activision is complete.

Microsoft’s offer is 18 times Activision’s 2021 earnings before tax, interest and depreciation.

If the deal were to fall through Microsoft would pay a $3 billion break-free, highlighting their confidence in the deal.

Netflix and Google are among other companies wanting to expand into the gaming universe.

The transaction is subject to customary closing conditions and completion of regulatory review and Activision Blizzard’s shareholder approval.

The deal is expected to close in fiscal year 2023.

Microsoft bought out Minecraft in 2014, with the gaming platform now home to 25 million subscribers, highlighting the companies success within the gaming industry.

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