At a Glance:
- Microsoft is buying Activision Blizzard for $68.7 billion.
- Microsoft will be offering $95 per share—a 45% premium to Activision.
- Microsoft will be home to the most popular games including Call of Duty & Minecraft boosting the popularity of the Xbox console.
In a history-making deal, Microsoft Corporation has locked a deal of $68.7 billion, buying Call of Duty maker Activision Blizzard. This is said to be the biggest gaming industry.
Microsoft has set the largest all-cash acquisition on record after this deal. It will lead to Microsoft having a competitive stand against the video-gaming market leaders like Sony and Tencent.
Microsoft creating the metaverse
Virtual worlds where people can play, work or socialize, are one of the niches that technology giants are exploring. Satya Nadella, the CEO of Microsoft explains the company’s plan for metaverse, he states, “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 ranked amongst the top tech giants. It has a strong foothold in the corporate software market such as the Azure cloud and Outlook franchise. Moreover, it is also one of the top three console makers. In its previous investments, Microsoft bought Mojang Studios-makers of Minecraft and Zenimax—which were multi-billion dollar deals, and now with Activision, it will be including ‘Call of Duty’ to the family.
Microsoft’s Gaming Market
Microsoft has launched a cloud gaming service that is already subscribed to by 25 million people. Its foothold in the gaming market was 6.5% in 2020 and after adding Activision it will take it to 10.7%. The Executives anticipate that Activision’s acquisition will lead to 400 million monthly active users, this will be leading communities to Microsoft’s metaverse plays.
Furthermore, Activision’s game library that includes the crowd favorite ‘Call of Duty’ will give Microsoft Xbox an edge over the competitive Playstation—which has already home to exclusive games.
