Microsoft to Buy Activision Blizzard

New to the community and a huge nerd on Technology!

I Love Microsoft and here’s why I’m excited about the acquisition.

Microsoft to pay $95 a share for Activision Blizzard, which makes it $68.7B including Net Cash. It will be Microsoft’s largest acquisition by far to grab a video-game heavyweight!

“The last two years, in particular, have shown how critical games are to helping people maintain a sense of community and belonging, even when they are apart,” said Satya Nadella! More than 3 Billion people play video games and it is a huge market to tap into!

It’s a developing story!

The deal is valuable because Microsoft is adding popular game franchises including Call of Duty, World of Warcraft and Candy Crush to Microsoft’s Xbox console business.

They say that the CEO of Activision - Bobby Kotick will remain but maybe that will change in a year or so. The company was also hit by sexual harassment and gender pay disparity among the company’s roughly 10,000 employees.

Let’s hope things go around well!

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The developing story has made me more interested and here’s the email from Microsoft Gaming CEO Phil Spencer to his staff!

Welcome back from the holidays. To start, I’d like to thank everyone for all of the hard work and dedication that have built this business and this community. Obviously, today’s agreement to acquire Activision Blizzard is incredibly exciting. In fact, it’s a milestone for our company, our business and our industry. I and the entire Gaming Leadership Team are deeply enthusiastic about this opportunity. We also announced this morning that we have surpassed 25 million Game Pass subscribers across console, cloud and PC, a great achievement for all of Team Xbox.

As players and partners, we all know how talented and dedicated the teams and studios are across Activision Blizzard. The legendary games and franchises across that company have delighted millions of people for decades. Coming together, we can accelerate our mission to extend the joy and community of gaming to everyone. We have the capability and opportunity to build simply the best, most engaging, most fun entertainment ecosystem anywhere.

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. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.

We expect this acquisition to close in FY23, pending regulatory approvals. Once the acquisition is completed, the Activision Blizzard business will report to me. In the meantime, we know you will have a lot of questions. The Gaming Leadership Team and I look forward to answering as many as we can at our next Monthly Gaming Update on Jan. 26. You can submit your questions now anonymously, or post them on our Team Xbox Yammer. Please also refresh our corporate social media guidelines.

As Satya mentioned, I am now CEO, of Microsoft Gaming. This change is a reflection of the incredible work each of you is doing to create the best entertainment ecosystem anywhere. As a leadership team, we know how much exciting but difficult work we have ahead of us, so it’s crucial that we operate as a single, unified team. To that end, I’m excited to announce effective today that Jerret West, CMO of Gaming, and his marketing team will move from Chris Capossela’s organization to report directly to me. Jerret will continue to be a member of Chris’ leadership team and leverage critical parts of Microsoft’s marketing muscle including Communications, Media, and Consumer Sales.

We will have a webcast for investors and media at 6 a.m. PT to discuss the Activision Blizzard transaction and our plans as Microsoft Gaming. Please join if you can.

Phil

Contains a lot of details thanks to The Verge! I think the acquisition is something everyone’s gonna look up to eh!

Team,

I’m thrilled to share that this morning we announced an agreement to acquire Activision Blizzard in an all-cash transaction valued at $68.7 billion. Activision Blizzard is one of the largest game publishers worldwide across console, PC and mobile, and it’s home to nearly 400 million monthly active players, along with iconic games including Call of Duty, Candy Crush, World of Warcraft and Diablo.

Gaming has been key to Microsoft since our earliest days as a company. Today, it’s the largest and fastest-growing form of entertainment, and as the digital and physical worlds come together, it will play a critical role in the development of metaverse platforms.

Together with Activision Blizzard, we believe we have an incredible opportunity to bring the joy and community of gaming to everyone on the planet, and we will invest and innovate to create the best content, community and cloud for gamers. We want to make it easier for people to connect and play great games wherever, whenever and however they want.

This agreement is a testament to the impact our gaming team has delivered, and I am deeply grateful for their hard work and commitment. Over the past few years, we’ve expanded our content pipeline and have become leaders in in-game subscriptions, as well as cloud gaming. And this holiday it was especially gratifying to see the response from fans and read the great reviews of our new first-party titles.

Effective today, Phil Spencer will become CEO, of Microsoft Gaming. When the acquisition closes, the Activision Blizzard business will report to Phil. We look forward to extending our journey to create a more diverse and inclusive culture for our new colleagues at Activision Blizzard, and ensuring all our employees can do what they love while thriving in a safe and welcoming environment — one where everyone feels empowered to do their best work.

I will be hosting a webcast with investors at 6 a.m. PT with Phil and Amy, as well as Bobby Kotick, the CEO of Activision Blizzard, to share more details on our big ambitions for gaming. Please join if you can.

Satya

This contains the long-term vision and the healthy culture that Microsoft boasts about! Pretty excited about the acquisition and thinking about what will Sony do!

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Here’s why the acquisition is so special, pouring new flames in the sector:

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DO You mean EA will get acquired by MSFT???

As for the streaming industry, I believe it will converge.

EA is the most logical target on the map: the corporation is based in the United States, is large enough ($37B) to be considered a heavyweight.