Microsoft To Acquire Activision For Almost $70 Billion

Microsoft is finalizing a transaction with Activision Blizzard in what would be the company’s largest-ever buyout, according to sources involved.

• The insider (asked not to be identified due to confidential information) said the $95 / share all-cash deal according to Bloomberg.
• Activision’s stock closed Friday at a 45% premium to Microsoft’s bid price of $95 / share. Before the news came out, Activision’s stock was up over 38% to $65.39 per share (Reuters)

“As we pursue that mission, it is incredibly exciting to announce that Microsoft has agreed to acquire Activision Blizzard.”
– Phil Spencer, CEO of Microsoft Gaming

Controversies and Accusations

Activision’s offices are still under a storm. Bobby Kotick, the company’s CEO, is facing accusations of mistreatment “inside and outside” the corporation. PlayStation’s CEO, Jim Ryan, issued an email to his workers expressing his thoughts. After reading that Activision “has not done enough to address a deep-seated culture of discrimination and harassment,” Ryan and his executive team were “disheartened and frankly stunned”.

RELATED: What’s the Future of COD on PS5, Now That Microsoft Is Acquiring Activision?

• Activision has collaborated with Sony on extensive marketing partnerships in addition to publishing most of its titles on PlayStation systems.
• The Call of Duty series has featured exclusive modes and material for the PlayStation in recent installments. This includes Call of Duty: Vanguard.

Image Courtesy of CNBC Television

Previously, the president of Activision Blizzard Entertainment decided to resign, just weeks after the company was hit with an inequality and sexual misconduct complaint in California, along with staff outcry over the company’s working conditions. Following the filing of the lawsuit, Activision CEO Bobby Kotick wrote to staff members, saying that the company was:

“Taking swift action to be the compassionate, caring company you came to work for and to ensure a safe environment.”

Kotick will keep his position and report directly to Microsoft’s Xbox head Phil Spencer, who has also been a vocal critic of Activision’s corporate culture.

Microsoft’s Vision and Future Goals

To stay competitive with Meta (Facebook) in developing technology to construct a virtual environment dubbed the metaverse, Microsoft has a long-term ambition with this acquisition. It was Microsoft CEO Satya Nadella who initially acknowledged the value of the metaverse months before Mark Zuckerberg.

“Until this transaction closes, Activision Blizzard and Microsoft Gaming will continue to operate independently. Once the deal is complete, the Activision Blizzard business will report to me as CEO, Microsoft Gaming.”
– Phil Spencer, CEO of Microsoft Gaming

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