- Microsoft is buying Activision for $95 per share.
- Activision CEO Bobby Kotick will continue his lead until the deal closes.
- This addition will make Microsoft the third largest gaming company.
On January 18, Microsoft announced its decision to buy gaming giant Activision Blizzard Inc. for $69 billion ($95.00 per share) to boost its gaming and Metaverse plans. Nadella first revealed Microsoft’s plans via an upgrade to its “Teams” service and a product named “Dynamics 365 Connected Spaces.” This acquisition will help Microsoft gain third place among the largest gaming companies in terms of revenue after Tencent (owner of Riot Games) and Sony (developer of Playstation).
Activision is the hub of legendary gaming franchises such as Call of Duty, Overwatch, Candy Crush, World of Warcraft and Tony Hawk’s Pro-Skater. Its liaison with Microsoft will allow these games to be added to Microsoft Xbox’s Game Pass service. The arrangement will be closing in the 2023 fiscal year.
Microsoft is optimistic about this addition and stated that it would help grow its services across all devices and platforms like mobile, PC, console, and cloud gaming. Satya Nadella, CEO and Chairman of Microsoft, said, “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.” Microsoft is expecting this to provide a foundation for the Metaverse.
Activision Blizzard CEO Bobby Kotick will continue to be in charge until the deal’s closure and transfer the control to Phil Spencer, Microsoft Gaming CEO. Spencer took to Twitter to support the deal via Xbox Blog Post. He shared the plans of the company working towards making cloud gaming accessible on as many devices as possible. He wrote, “The fantastic franchises across Activision Blizzard will also accelerate our plans for Cloud Gaming, allowing more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices you already own.”