With the acquisition, Microsoft will now become the world’s third-largest gaming company behind Tencent and Sony.
Technology giant Microsoft Corporation is buying one of the leading game developers in the industry, Activition Blizzard Inc., for “$95 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash.”
In a press release Tuesday, Microsoft said that the deal will move the company as “the world’s third-largest gaming company by revenue, behind Tencent and Sony.”
“The planned acquisition includes iconic franchises from the Activision, Blizzard and King studios like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush, in addition to global eSports activities through Major League Gaming,” it added.
This acquisition will also accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud, as well as provide building blocks for the metaverse.
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 Phil Spencer, CEO, Microsoft Gaming.
“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,” said Satya Nadella, chairman and CEO, Microsoft.
“We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”
“Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front 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,” said Bobby Kotick, CEO, Activision Blizzard. “The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision, and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”
The deal is expected to close in the fiscal year 2023 once the customary closing conditions and completion of the regulatory review are done, as well as Activision Blizzard’s shareholders give their approval. It will then be accretive to non-GAAP earning per share upon close.
So far, the transaction has already been approved by the boards of directors of both Microsoft and Activision Blizzard. – WhatALife.ph