Microsoft Corp. said Tuesday it will buy Call of Duty video game maker Activision Blizzard for $68.7 billion in cash, in the biggest deal in the industry, making the Xbox maker the third-biggest gaming company by revenue. Microsoft said the deal will accelerate the growth of its mobile gaming, PC, console and cloud gaming business and provide the building blocks for the metaverse. On Tuesday, Microsoft said it was buying video game company Activision Blizzard for $68.7 billion in a deal that would bring games like Warcraft and Call of Duty to the software giant. If successful, it will be the biggest acquisition ever made by Microsoft, and by far the biggest deal ever made in the video game world.
Combining Activision Blizzard's world-class talent and outstanding franchises with technology, distribution, access to talent, an ambitious vision and shared commitment to gaming, and Microsoft's involvement will help ensure our continued success in an increasingly competitive sector. Microsoft will buy Activision Blizzard on Tuesday, January 18, 2022 for $68.7 billion to gain access to popular games including Call of Duty and Candy Crush. Microsoft acquires Activision Blizzard Inc., publisher of interactive entertainment and game development content, for $68.7 billion. Microsoft officials said the acquisition will also strengthen the company's Game Pass portfolio as Microsoft will bring Activision Blizzard games to Game Pass.
Arguably one of the largest, most successful and profitable studios in video game history, Activision Blizzard has solidified its status over the past three decades by focusing on solid IP sales, long-running multiplayer games, and hugely successful annual games. .released. At this point, Microsoft has only vaguely noted that "Activision Blizzard games are enjoyed across multiple platforms, and we plan to continue to support these communities as they grow." With great teams and great technology, Microsoft and Activision Blizzard will allow players to enjoy the most exciting franchises like aHaloa and aWarcraft almost anywhere.
Microsoft has said Activision as a company will report to Microsoft Xbox boss Phil Spencer after the deal, suggesting that Kotick may be leaving after the handover.
Last week, Grand Theft Auto video game maker Take-Two Interactive (TTWO.O) said it would buy Zynga for $11.04 billion in a cash and stock deal that would add popular mobile games like FarmVille. growing demand for gaming on the go. The deal is subject to customary closing conditions and completion of regulatory review and approval by Activision Blizzard shareholders, Microsoft said. With Activision Blizzard boasting nearly 400 million monthly active players in 190 countries and $3 billion in franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry.
The deal also plays into the role of Microsoft's long-term vision as it competes with Meta (formerly Facebook) in building the technology to create a virtual world called the Metaverse. In 2014, Microsoft bought Mojang, the maker of Minecraft, for $2.5 billion. And last year, Microsoft completed its $7.5 billion acquisition of game maker Bethesda.
Microsoft's $95 per share offer is a 45 percent premium for closing Activision on Friday. The deal was approved by the boards of directors of Microsoft and Activision Blizzard. Activision Blizzard was rocked by a scandal where employees went on strike and often asked for the resignation of the company's CEO, Bobby Kotick.
The head of Microsoft Xbox Gaming, Phil Spencer, released an official statement regarding the purchase. Activision shares rose almost 38% to $65.39 before their shares were put on hold due to the news. Activision shares were trading at $89.55 prior to the call. Major investments include BeiGene Ltd and Microsoft for a total of $71.1 million.
In addition, the fund holds 116,444 Microsoft shares worth $32.8 million, down about 0.1% over the past six months. Last week, rival video game publisher Take-Two Interactive Software said it would buy Farm creator Zynga for $11 billion in cash and stock, one of the largest ever acquisitions in the industry. The Activision booth is on display at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, USA on June 13, 2017.
The Vanguard S&P 500 ETF (VOO) is one of the company's largest exchange-traded funds (ETFs) with approximately $175 billion in assets. With a market capitalization of $549 billion, Facebook has raised $333 million since 2010, according to the group. Apple, with a market capitalization of $894 billion, has amassed $693 million in subsidies since 2009, the group says. The company is still facing those allegations and on Monday said it had fired or laid off more than three dozen employees since July and punished 40 more people.
Tesla, which has a market capitalization of $54 billion, has been in the lead since 2007, having received $3.5 billion in government subsidies since 2007, according to the nonprofit Good Jobs First. The Fidelity 500 Index Fund (FXAIX) is one of the largest mutual funds in the company with net assets of approximately $287 billion. Google's $762 billion market cap parent company Alphabet has received $766 million since 2000, with most of the grants coming in since 2011, according to Good Jobs First.
Shares in maker Candy Crush have fallen more than 37% since hitting a record high last year, largely due to allegations of sexual harassment and other misconduct by the video game company.
The company, which primarily manages mutual funds and ETFs, has approximately $6.2 trillion in assets under management (AUM) globally. The company owns investment management firm Fidelity Investments, which has approximately $3.5 trillion in discretionary assets under management. FMR is one of the largest financial services companies in the United States, providing investment management, pension plans, brokerage, financial planning and wealth management services. Before joining Google, he was Vice President of Bertelsmann Media Germany.