On Tuesday, Microsoft said it would buy video game publisher Activision Blizzard in an all-cash transaction worth $68.7 billion (approximately Rs 512,362), or $95 per share, including includes Activision Blizzard’s net proceeds. The Redmond-based software giant said that when the transaction closes, it will become the world’s third-largest gaming company by revenue, behind Tencent and Sony.
Trades are subject to customary closing conditions and complete regulatory review and Activision Blizzardshareholder approval, Microsoft speak. This agreement is expected to close in fiscal year 2023. Until this transaction closes, Activision Blizzard and Microsoft Gaming will continue to operate independently.
Microsoft’s offer was $95 per share at a 45 percent premium at Activision’s end of Friday. Shares of Activision were up nearly 38% at $65.39 before being paused on the news. The acquisition will boost Microsoft Game Pass, has reached a new milestone of over 25 million subscribers. The company plans to include Activision Blizzard games in the game.
Demand for video games has increased during the pandemic, as consumers stuck at home play more games to entertain themselves. Activision’s game library like Call of Duty and Overwatch also provide for Microsoft Xbox gaming platform superior to Sony PlayStation, over the years there has been a steady stream of more stable exclusives.
Last week, a rival video game publisher Take-Two . interactive software said it would buy FarmVille creator Zynga in one $11 billion cash and stock deal, marking one of the largest industry-wide acquisitions of all time.
In a blog post, Microsoft disclosure that Bobby Kotick will continue to serve as Activision Blizzard’s CEO, and he and his team “will maintain their focus on advancing efforts to further strengthen the company’s culture and accelerate growth.” business chief.” After the transaction is closed, Activision Blizzard’s business will report to Phil Spencer, CEO, Microsoft Gaming.
In a press statement, Microsoft President and CEO Satya Nadella speak, “Games are the most dynamic and exciting genre in entertainment across all platforms today and will play an important role in the development of metaverse platforms. We’re investing deeply in world-class content, communities, and the cloud to usher in a new era of gaming that puts players and creators first, and makes gaming safe, comprehensive and accessible to all. ”
“Players everywhere love Activision Blizzard games, and we believe creative teams have the best work ahead of them,” said Phil Spencer, CEO of Microsoft Gaming. “Together, we will build a future where people can play the games they want, virtually anywhere they want.”
Bobby Kotick, CEO, Activision Blizzard, 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 technology, distribution, talent access, ambitious vision, and shared commitment to gaming and inclusion Microsoft will help ensure our continued success in an increasingly competitive industry.”
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