Microsoft, America’s leading multinational technology corporation that manufactures computer software, consumer electronics, personal computers, and provides other services, announced plans to acquire gaming behemoth Activision Blizzard for $69 billion as part of an expansion of its gaming and Metaverse initiatives.
Activision Blizzard is the home of many well-known gaming franchises, including Call of Duty, Overwatch, Candy Crush, and World of Warcraft. Following the agreement, its games will be added to Microsoft Xbox’s Game Pass service, which currently has 25 million subscribers.
Microsoft stated that the acquisition will help it expand its services across mobile, PC, console, and cloud gaming, and that it will “provide building blocks for the Metaverse.”
In the announcement, Microsoft CEO and Chairman Satya Nadella stated, “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.”
We’re making significant investments in world-class content, community, and the cloud to usher in a new era of gaming that prioritizes players and creators while making gaming safe, inclusive, and accessible to all.”
Nadella first revealed Microsoft’s Metaverse plans in November, with an update to its “Teams” service and a product called “Dynamics 365 Connected Spaces.” Later this year, the “Mesh” upgrade for Teams will introduce personalized digital avatars and immersive spaces to meet in the Metaverse. People can “absolutely expect” to see it, according to Nadella.
According to Microsoft’s announcement, the company will acquire Activision Blizzard for $95.00 per share, for a total valuation of $68.7 billion, with the transaction expected to close in the fiscal year 2023.
“Microsoft will acquire Activision Blizzard for $95.00 per share in an all-cash transaction valued at $68.7 billion, including Activision Blizzard’s net cash,” it says. When the deal is completed, Microsoft will be the world’s third-largest gaming company by revenue, trailing only Tencent and Sony.”
Microsoft will become the third largest gaming company in terms of revenue, after Riot Games owner Tencent and PlayStation developer Sony, as a result of the agreement.