Microsoft just made one of the biggest deals ever for a game stuÂdio. The comÂpaÂny announced its intenÂtion to acquire ActiviÂsion BlizÂzard for $95 per share, valuÂing the all-cash deal at $68.7 bilÂlion. The deal would make the comÂbined entiÂty the âthird largestâ games comÂpaÂny by revÂenue, accordÂing to Microsoft, and bring titles like Call of Duty, World of WarÂcraft and CanÂdy Crush under the comÂpaÂnyâs wing. Microsoft plans to add ActiviÂsion BlizÂzard games to Game Pass as part of the deal.
Mobile gamÂing is also a big facÂtor in the acquiÂsiÂtion, Microsoft said. Along with inteÂgratÂing Kingâs phone games into MicrosoftÂâs busiÂness, the purÂchase promisÂes to bring franÂchisÂes like Halo and WarÂcraft to more devices.
The takeover is expectÂed to close in MicrosoftÂâs 2023 fisÂcal year (no latÂer than June 2023) if regÂuÂlaÂtors and ActiviÂsion BlizÂzard shareÂholdÂers give the go-ahead. The boards of both comÂpaÂnies have already approved the deal.
Although news of the acquiÂsiÂtion comes as ActiviÂsion BlizÂzard is still embroiled in a misÂconÂduct scanÂdal, you shouldÂnât expect any major leadÂerÂship changes. BobÂby Kotick will remain the CEO of ActiviÂsion BlizÂzard despite calls for his resÂigÂnaÂtion, and will now report to Microsoft GamÂing chief Phil Spencer. In a corÂpoÂrate letÂter, Kotick described MicrosoftÂâs move as a chance to âfurÂther strengthÂenâ ActiviÂsion BlizÂzardâs corÂpoÂrate culÂture and âset a new stanÂdardâ for incluÂsivÂiÂty. He did not outÂline any speÂcifÂic plans for reform, but said there would be âminÂiÂmal changesâ in the numÂber of employÂees once the union ended.
If it goes ahead, the mergÂer would help Microsoft comÂpete with heavyÂweights TenÂcent and Sony, both of which have been buyÂing sprees in recent months. Kotick has also seen it help his comÂpaÂny betÂter comÂpete as metaÂverse gamÂing grows in promiÂnence. In this light, it can be as much a quesÂtion of the susÂtainÂabilÂiÂty of the comÂpaÂny as anyÂthing else.
Some major quesÂtions remain, howÂevÂer. Microsoft hasÂnât specÂiÂfied how many ActiviÂsion BlizÂzard games will be Xbox-excluÂsive on conÂsoles or WinÂdows-excluÂsive on PCs. Itâs also unclear to what extent Microsoft might influÂence the develÂopÂment of key franÂchisÂes. Itâs uncerÂtain whether Microsoft will lock Call of Duty or othÂer giant games onto the Xbox in the near future, howÂevÂer â PlayStaÂtion sales account for a large chunk of ActiviÂsion BlizÂzardâs revÂenue, and the abanÂdonÂment of that platÂform âform would sigÂnifÂiÂcantÂly reduce the comÂpaÂnyâs influÂence in the games industry.
Leave a Reply