Microsoft announced their plans to acquire publisher and developer Activision Blizzard, a move that will put them among the top three gaming companies, in terms of revenue, behind Tencent and Sony.
The all-cash transaction will cost Microsoft $95 per share, bringing the total deal to an impressive $68.7 billion.
In response to the news, Satya Nadella, chairman and CEO at Microsoft, gave the following statement:
Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms. We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.
Microsoft Press Release
Phil Spencer, Microsoft Games CEO, furthered:
Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them. Together we will build a future where people can play the games they want, virtually anywhere they want.
Microsoft Press Release
Bobby Kotick, Activision Blizzard CEO, will be kept on as CEO during the process and following it directly report to Spencer. He also commented on the situation with the following:
For more than 30 years our incredibly talented teams have created some of the most successful games. The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.
Microsoft Press Release
In a later conversation with Bloomberg, Spencer commented on concerns about how this will deal impact those on other platforms, such as Sony and Nintendo’s.
I’ll just say to players out there who are playing Activision Blizzard games on Sony’s platform: It’s not our intent to pull communities away from that platform and we remained committed to that.
Bloomberg
Time will tell, but Microsoft still has a long journey before the transaction is complete. Currently they estimate it closing in fiscal year 2023, pending regulatory review and shareholder approval.
