Microsoft Purchases Activision Blizzard – With Cash

Even if you are not a gamer, you have likely heard of “Call of Duty” or “Candy Crush,” two of several incredibly successful video games produced by Activision Blizzard (ATVL.O).  Microsoft (MSFT.O) has announced a deal to purchase it for a staggering $68.7 billion in cash.

“The deal announced by Microsoft on Tuesday, its biggest-ever and set to be the largest all-cash acquisition on record, will bolster its firepower in the booming videogaming market where it takes on leaders Tencent and Sony.” Subrat Patnaik and Supantha Mukherjee, Reuters

According to Reuters, the deal is the biggest in gaming industry history and points toward the continued trend of the virtual future of populations working, socializing, and playing in the “metaverse.”

Newzoo, a data analytics firm, states that Microsoft had a 6.5% share in the gaming industry in 2020 – acquiring Activision will raise it to 10.7%.


In March 2021, Activision announced it was laying off 50 employees, citing the impact of COVID-19 as well as restructuring.

How hard does this hit other industry players such as Sony? (Think PlayStation). Forbes Senior Contributor, Eric Kain, writes: “At this point, with the acquisition still in the works, neither company is saying which games and franchises will become Xbox and PC exclusives—and which games will remain on competitor platforms like PlayStation and Nintendo.”


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Here are some documents currently available on RealDealDocs pertaining to the gaming industry:

Microsoft Corp 8-K  11/2021

Activision Blizzard, Inc. 10-K

Xbox Console Publisher License Agreement for MOTORSPORT GAMING US LLC, 704Games Company, Microsoft Corporation

Playstation 5 Amendment To Playstation Global Developer & Publisher Agreement


Sources

Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device

Microsoft to gobble up Activision in $69 billion metaverse bet

Activision Blizzard lays off about 50 employees, citing COVID-19’s effects on its esports leagues

What Microsoft’s Activision-Blizzard Buyout Means For The Future Of Xbox, PlayStation And ‘Call Of Duty’


Image courtesy of Florian Bollmann at Pixabay