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Microsoft buys Activision Blizzard, creator of Call of Duty and Diablo
The deal has been closed for almost $70 billion and has been officially confirmed by Microsoft. All that remains is for it to be accepted by the government.
The information was anticipated by The Wall Street Journal and has been officially confirmed by Microsoft. The Redmond-based company has announced the acquisition of Activision Blizzard, the creators of Call of Duty, Diablo and Overwatch. The press release also confirms that the acquisition will close for about $70 billion. It is expected to be completed during the fiscal year 2023, as the transaction is pending approval by the relevant regulatory authorities.
Microsoft claims that this acquisition will "accelerate Microsoft's growth in the video game business" in the console arena as well as in mobile, PC and cloud.
According to the statement, Microsoft will pay $95 per share in cash transactions valued at $68.7 billion. When the deal closes, they will become the third-largest company in the industry based on revenue, behind only Tencent and Sony. Activision Blizzard includes studios such as Infinity Ward, Treyarch, Sledgehammer Games, King and Blizzard Entertainment. In total, more than 10,000 employees.
Bobby Kotick to continue as CEO of Activision Blizzard
Bobby Kotick will remain as CEO of Activision Blizzard despite being one of those singled out for sexual and labor harassment cases within the company. Microsoft explains that he and his team will focus on improving the company's culture and will have to answer to Phil Spencer, CEO of Microsoft Gaming.
"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,” said Satya Nadella, CEO of Microsoft. "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.”
Phil Spencer added: "Gamers around the world love Activision Blizzard games. Together, we will create a future where people can play the games they want, virtually anywhere they want."
Kotick, for his part, also welcomed the agreement. "For more than 30 years our incredibly talented teams have created some of the most successful games." According to the executive, the talent and expertise of Activision Blizzard's studios will benefit from Microsoft's technology and ambitious vision in the "shared commitment" to make the industry inclusive and competitive.