Microsoft Bets $69 Billion On Gaming And Betting On Metaverse

Tech giant Microsoft has announced it will acquire Activision Blizzard, a major games developer and publisher of interactive entertainment content.

Microsoft Bets

Microsoft bets on games and bets on Metaverse at $69 billion

Microsoft announced it will acquire Activision Blizzard for $95 per share, or approximately 45% more than its previously announced valuation, in a $68.7 billion cash transaction that includes Activision Blizzard’s net cash. The company also added:

“This acquisition will accelerate the growth of Microsoft’s mobile, PC, console and cloud gaming business and provide the building blocks for the Metaverse.”

This acquisition includes several world-renowned titles from Studios Activision, Blizzard and King, including Warcraft, Diablo, Overwatch, Call of Duty and Candy Crush. It will also include global esports activity through Major League Gaming.

Per Satya Nadella, President and CEO of Microsoft said:

“Games are the most dynamic and exciting entertainment genre on any platform today and will play an important role in the development of Metaverse platforms.”

Bobby Kotick will continue as Activision Blizzard’s CEO, while the company will report to Phil Spencer, CEO of Microsoft Gaming.

Phil Spencer, CEO of Microsoft Gaming said: “Gamers around the world love Activision Blizzard games, and we believe creative teams have the best work ahead of them. “Together we will build a future where people can play the games they want, virtually anywhere they want.”

Activision Blizzard CEO Bobby Kotick said, “For over 30 years, our incredibly talented team has created some of the most successful games. The combination of Activision Blizzard’s world-class talent and unique franchise with Microsoft’s technology, distribution, accessibility to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry. “

Mobile is the largest segment in gaming, with almost 95% of gamers worldwide preferring mobile games. Through great teams and great technology, Microsoft and Activision Blizzard will enable gamers to enjoy the most compelling series like Halo and Warcraft virtually anywhere they want. And with games like Candy Crush, Activision Blizzard’s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment.

This acquisition also strengthens Microsoft’s Game Pass portfolio with its plan to bring Activision Blizzard games to Game Pass, which has already reached a new milestone of over 25 million subscribers. With nearly 400 million monthly active Activision Blizzard players in 190 countries and three multi-billion dollar franchises, this acquisition will make Game Pass one of the hottest and most diverse gaming content lines in the industry. At the time of the closure, Microsoft will have 30 in-house game development studios, as well as additional esports publishing and production capabilities.

The transaction is subject to customary closing conditions and is subject to regulatory review and approval by Activision Blizzard shareholders. The transaction is expected to close in fiscal 2023 and will generate non-GAAP earnings per share upon closing. The transaction has been approved by the boards of directors of Microsoft and Activision Blizzard.

The agreement is expected to close in fiscal 2023, the announcement adds:

“Upon completion of the transaction, Microsoft will become the third-largest gaming company in the world by revenue behind Tencent and Sony.”

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is enabling digital transformation for the era of a smart cloud and smart edge. Its mission is to empower every person and organization on the planet to achieve more.

About Activision Blizzard

Through communities rooted in the video game franchise, Activision Blizzard enables hundreds of millions of people to experience joy, thrill and achievement. Activision Blizzard enables social connections through the lens of joy, and we promote purpose and meaning through competitive play. Video games, unlike any other social media or entertainment medium, have the ability to break down barriers that can hinder tolerance and understanding. Celebrating differences is at the heart of Activision Blizzard’s culture and ensures we can create games for players from diverse backgrounds across the 190 countries where our games are played.

Join CoinCu Telegram to keep track of news:

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Important NOTE: All content on the website is for informational purposes only and in no way constitutes investment advice. Your money, the choice is yours.

970x90.gif (970×90)