Microsoft's Billion-Dollar Mega Deal: The Game-Changing Acquisition of Activision Blizzard
Microsoft successfully completes its acquisition of Activision Blizzard after overcoming regulatory challenges in the US and UK
Highlights
Microsoft completes its $68.7 billion acquisition of Activision Blizzard, making it the tech giant's largest acquisition to date.
Despite facing opposition from competitors and regulators, Microsoft managed to secure exclusive long-term agreements and made necessary adjustments to receive approval for the deal. As a result of this acquisition, Microsoft has gained ownership of prominent gaming franchises such as Call of Duty and Overwatch. Furthermore, they will expand the availability of Activision Blizzard games to Xbox Game Pass.
Microsoft has successfully completed its record-breaking acquisition of Activision Blizzard for $68.7 billion. Despite facing opposition from rival gaming companies and regulatory bodies, Microsoft has officially brought Activision Blizzard into its fold, solidifying its position as a major player in the gaming industry. With this acquisition, Microsoft now boasts ownership of popular franchises such as Call of Duty, Overwatch, and Candy Crush Saga.
From the moment Microsoft announced its plans to acquire Activision Blizzard, there were concerns raised by industry stakeholders, including Sony, the Federal Trade Commission (FTC), and the UK's Competition and Markets Authority (CMA). In an attempt to appease regulators, Microsoft entered into exclusive long-term deals with various gaming companies and platforms such as Nvidia, Boosteroid, Nintendo, and Ubitus. Initially resistant, Sony eventually reached a Call of Duty deal with Microsoft in July. Microsoft also worked diligently to gain favor with regulators, particularly the CMA.
Following the rejection of the Activision Blizzard purchase by the CMA, Microsoft was required to make revisions to its initial proposed deal. With the approval of the renewed acquisition agreement by the CMA, Microsoft wasted no time in finalizing the deal. In an official statement, Xbox chief Phil Spencer announced that Activision Blizzard would now be a part of Xbox. This acquisition marks the largest in the company's history, surpassing the $26 billion acquisition of LinkedIn in 2016 and elevating Microsoft to the position of the third-largest gaming company by revenue, after Tencent and Sony. Additionally, Microsoft intends to bring Activision Blizzard games to Xbox Game Pass. "Today, we begin the effort to bring beloved franchises from Activision, Blizzard, and King to Game Pass and other platforms," stated Phil Spencer.
Microsoft also mentioned that players should anticipate updates regarding the inclusion of Activision Blizzard games on Game Pass in the upcoming months. Although Microsoft clarified earlier this week that certain newer titles such as Diablo 4 and Call of Duty: Modern Warfare 3 would not be available on Game Pass this year, rumors suggest that older Call of Duty titles may soon be added to Game Pass.
Microsoft will acquire nine additional studios from Blizzard, expanding Xbox Game Studios. The King division of Microsoft will also bring in studios from over 11 locations, incorporating more than 8,500 Activision employees into the Xbox maker's team. Notably, Bobby Kotick, the CEO of Activision Blizzard, will remain in his position until the end of the year. In early 2024, a new CEO will be appointed, and they will report to Phil Spencer. As the deal concludes, Bobby Kotick will receive a substantial payout. It will be intriguing to observe how Microsoft tackles Activision's internal concerns in the future.
