18 In January, Microsoft announced plans to buy game developer and publisher Activision Blizzard for $68.7 billion.. Papers Activision Blizzard at the opening of the session rose by 30%, to 85 $.
"Hot" industry
Three billion people actively play games, and the gaming industry has become the largest and fastest growing form of entertainment. Microsoft Corporation today announced plans to acquire Activision Blizzard, a leader in game development. Acquisition to accelerate growth of Microsoft's mobile gaming business, PC, Consoles, in the cloud, and also provide a launching pad for launching the metaverse.", Microsoft says in a press release.
After the acquisition, franchises like Warcraft will go to Microsoft, Diablo, Overwatch и Call of Duty, some of which will be added to the Xbox Game Pass library. Once the deal is closed, Microsoft will become the third largest gaming company after Tencent and Sony.
Possible purchase of Activision Blizzard is not the first since Phil Spencer came to the leadership of Microsoft Gaming. For example, in September 2020, the company bought publisher and game developer Bethesda Softworks for 7,5 billion dollars.
Computer and mobile games are a competitive industry, where companies compete, among other things, through mergers and acquisitions. So, industry giant Take-Two recently announced the purchase of developer Zynga for $12.7 billion, with a premium of 64%.
Details of the deal
Microsoft to pay for Activision Blizzard shares 95 $ - on 46% more, what was the price of the shares before the announcement. The total amount of the transaction will be 68.7 billion dollars. If companies get regulatory approval, The deal will close in fiscal year 2023.
What about stocks
Excluding recent gains, Activision Blizzard shares have fallen by 37%. After a successful 2020, the company's revenue growth slowed down, and Activision Blizzard is mired in scandals: some employees accused colleagues of sexual harassment.
Activision Blizzard stock rose by 30%, to 85 $. Microsoft shares fell 1%, to 307 $.
