Microsoft Acquires Activision Blizzard, Deal Expected to Close in FY2023

Well, who would have ever thought of such an event for today? It came out of the blue that Microsoft is closing a deal with Activision Blizzard, as the creators of Call of Duty, Warcraft, Diablo, Hearthstone, StarCraft may forces with Team Xbox soon.

Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. Microsoft will become the world’s third-largest gaming company by revenue when the transaction closes, behind Tencent and Sony. The planned acquisition includes iconic franchises from 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. The company has studios around the world with nearly 10,000 employees.

While Activision Blizzard’s discrimination lawsuits remained unmentioned, Phil Spencer’s post also talks about the future and culture of the company, which indirectly talks about the troubled Activision Blizzard journey over the past year.

As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment.

As a team, we are on a mission to extend the joy and community of gaming to everyone on the planet. We all know that gaming is the most vibrant and dynamic form of entertainment worldwide, and we’ve experienced the power of social connection and friendship that gaming makes possible.

While everyone’s asking how this would reflect on already established big IPs from Blizzard, most people praise the acquisition even though Bobby Kotick, the troubling CEO, still holds the same role at Activision Blizzard. However, this doesn’t mean Kotick’s presence will remain intact, as it might still be altered once the acquisition settles. According to both of the companies, Bobby Kotick will be removed from his role after the deal closes.

Activision Blizzard and Microsoft Gaming will continue to operate independently until this transaction closes. Once the deal is complete, the Activision Blizzard business will report to me as CEO, Microsoft Gaming.

Let’s see at the positive side for a moment. This means that many Triple-A games are going to join Game Pass, Xbox’s gem and real money-maker. Microsoft’s Xbox Game Pass service has grown to 25 million subscribers, 39% more than what it had a year ago. It’s more than likely that Xbox Game Pass will remain in Microsoft’s focus in the future, which operations have proven vital both for the users and the company.

Developing…