Activision Blizzard to be bought by Microsoft for $68.7 billion
Yes, you read that right, Activision Blizzard is to be bought by Microsoft for $68.7 billion. After being amidst a scandal for the past year and seeing its share price drop and its CEO on the edge of being jobless, it now appears to be faced with the biggest takeover in the history of the industry.
Activision Blizzard will be acquired by Microsoft for $68.7 billion in cash. This makes Microsoft the third biggest gaming company (in terms of revenue) after China’s Tencent and Sony.
This is a big deal for Microsoft to acquire Activision Blizzard, the largest acquisition in their history at $95 per share, around 45% over the stock price before the announcement. To put this in perspective, Disney paid just over $15B for Pixar, Marvel, and Lucasfilm combined, unadjusted for inflation.
Why did Microsoft do it though?
Due to lawsuits, employee fury, condemnations from other companies and other allegations against Activision Blizzard. The company is therefore embroiled in a scandal. As a result, the value of the company has plummeted, making the acquisition cheaper for Xbox.
When will the deal be finalized?
Xbox plans on concluding the deal in the fiscal year 2023, which ends in June 2023. However, regulators and Activision Blizzard shareholders must first approve the deal.
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