Microsoft announced today that it is buying game studio Activision Blizzard in an all-cash deal worth $68.7 billion, or $95 per share.
According to Neowin , before the transaction is completed, both Microsoft and Activision will continue to operate individually. Upon closing the deal, Activision will report directly to Microsoft, specifically Xbox Chief Phil Spencer.
With the acquisition of Activision and 10,000 employees at various studios, Microsoft will become the third largest gaming company globally by revenue. Microsoft will receive all of Activision’s intellectual property (IP), including Call of Duty , Candy Crush, Overwatch, Diablo, and Warcraft.
Speaking of the acquisition, Spencer said, “Players everywhere love Activision Blizzard games, and we believe the company’s creative teams have some of the best work to come. Together we will build a future where people can play the games they want, virtually anywhere they want.”
Although the transaction has been approved by the boards of both companies, it will have to be approved by regulators and by shareholders – which is important considering the nature of the deal, the value of the deal. its value and potential antitrust concerns. The transaction is expected to be completed by the end of fiscal year 2023.
If the deal is approved, it will be interesting to see how the transaction changes the landscape of the gaming market. In its announcement, Microsoft only vaguely noted that “Activision Blizzard games are used on a variety of platforms, and we plan to continue supporting those communities in the future.”