videogame Publisher

Microsoft announced on Tuesday that it would buy videogame publisher Activision Blizzard for $68.7 billion in an all-cash deal, or $95 per share, including Activision Blizzard’s net cash. When the deal closes, the Redmond-based software giant will be the world’s third-largest gaming company by revenue, behind Tencent and Sony. To put the staggering sum into perspective, the deal is worth approximately Rs 5,12,000 crore, or Rs five lakh twelve thousand crores in Indian currency.

According to Microsoft, the transaction is subject to customary closing conditions, regulatory approval, and Activision Blizzard shareholder approval. The transaction is set to close in the fiscal year 2023. Activision Blizzard and Microsoft Gaming will continue to operate independently until the transaction is completed.

Activision Blizzard is the parent company of Activision, a video game developer based in the United States known for titles such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty,” and “Candy Crush.” Activision is well-known in the gaming community for its titles and regular eSports events.
The company now has studios all over the world and employs about 10,000 people. Bobby Kotick will remain the CEO of Activision Blizzard following the acquisition. The business will carry on as usual, with a focus on accelerating revenue growth. The Activision Blizzard business will be reported to Phil Spencer, Microsoft Gaming’s CEO.

Microsoft’s offer of $95 per share represents a 45 percent premium over Activision’s Friday closing price. Before being halted for news, Activision’s stock was up nearly 38% at $65.39. Microsoft’s Game Pass, which now has over 25 million subscribers, will benefit from the acquisition. Activision Blizzard games will be included in the game pass, according to the company.
During the pandemic, demand for video games has increased as consumers who are stranded at home play more games to keep themselves entertained. Activision’s library of games, including Call of Duty and Overwatch, gives Microsoft’s Xbox a leg up on Sony’s PlayStation, which has had a more consistent stream of exclusive games for years.

Take-Two Interactive Software, a rival videogame publisher, announced last week that it would buy FarmVille creator Zynga for $11 billion in cash and stock, marking one of the largest industry-wide acquisitions of all time.
Bobby Kotick will remain CEO of Activision Blizzard, according to Microsoft, and he and his team “will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth.” The Activision Blizzard business will report to Phil Spencer, Microsoft Gaming’s CEO, once the deal is completed.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today,” Microsoft Chairman and CEO Satya Nadella said in a statement. “Gaming will play a key role in the development of metaverse platforms.” We’re putting a lot of money into world-class content, community, and cloud to usher in a new era of gaming that prioritizes players and creators and makes gaming safe, inclusive, and accessible to everyone.”
“Players all over the world love Activision Blizzard games, and we believe the creative teams are working on their best work yet,” said Phil Spencer, Microsoft Gaming’s CEO. “Together, we will create a future in which people can play their favorite games virtually anywhere.”

Source: https://gadgets.ndtv.com/

“Our incredibly talented teams have created some of the most successful games for more than 30 years,” said Bobby Kotick, CEO of Activision Blizzard. “The combination of Activision Blizzard’s world-class talent and incredible franchises, as well as Microsoft’s technology, distribution, talent access, ambitious vision, and shared commitment to gaming and inclusion, will help ensure our continued success in an increasingly competitive industry.”