Sony’s Value Down 13% After Microsoft’s Activision Blizzard Acquisition
Very recently, Microsoft shocked the gaming industry by announcing its acquisition of Activision Blizzard. An estimated 68.7 billion dollars was reportedly spent on the deal. This information had a significant impact on Sony, which saw a decline in its value at the opening of the Tokyo Stock Exchange yesterday.
According to Bloomberg, the market value of Sony shares has decreased by 13%, or almost $20 billion. Since October 2008, it has been the largest decline of the company’s shares.
Image Courtesy of Yahoo! Finance
Microsoft’s Acquisition
Microsoft’s buyout of Activision Blizzard is already the greatest business transaction in the worldwide gaming business. Before this, Bethesda’s parent company, Zenimax Media, was purchased for about US$7.5 billion in 2021 when it was finalized.
It is anticipated that the takeover will help Microsoft Gaming CEO Phil Spencer continue forward with his company’s Cloud Gaming strategy and make Xbox gaming more accessible to a wider range of individuals across the world. Additionally, Xbox Game Pass, which already boasts more than 25 million customers, will include Activision Blizzard games.
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).
Phil Spencer, Xbox and Microsoft Gaming CEO
“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
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.
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JC Paredes
Since March 2021, I've worn two hats at Spiel Times: a writer and a Managing Editor. In my writing role, I've earned recognition from Wikipedia and Nev Schulman (Catfish TV Show host) for my insightful analysis and engaging narrative style. I'm passionate about all things gaming, with a keen eye for detail and a knack for uncovering hidden secrets within games. My gaming journey began at a young age, captivated by titles like Resident Evil and Tomb Raider. Today, I enjoy exploring open-world RPGs and MMORPGs, consumed by their lore and crafting theories about their narratives. I'm also drawn to the suspenseful atmosphere of horror games and the intricate narratives of crime-themed titles, bringing a unique perspective to my writing. Beyond gaming, I have a fascination with anything unexplained and chilling, a passion that often spills over into my exploration of horror games. When I'm not engrossed in a virtual world, you can find me curled up and spending time with my adorable doggy sidekick, Teemo. As Managing Editor, I'm committed to fostering a collaborative and supportive environment for our writing team. I communicate openly with my team members, addressing any content-related issues and providing guidance to help them excel.
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