Microsoft Corp announced on Tuesday that it will buy Activision Blizzard, the maker of the “Call of Duty” videogame franchise, for $68.7 billion in cash, the largest acquisition in the industry, making the Xbox maker the third-largest gaming company by revenue. Microsoft’s offer of $95 per share is a 45 percent premium over Activision’s Friday closing price.
Before being delayed for news, Activision’s stock was up over 38% at $65.39.
“Today, gaming is the most dynamic and interesting area in entertainment across all platforms, and it will play a critical part in the development of metaverse platforms,” says a spokesperson. Satya Nadella, Microsoft’s Chief Executive Officer
Today is a historic moment. We are excited to announce that the world-renowned franchises and talented people at @ATVI_AB will be joining Team Xbox!
Full announcement details here: https://t.co/RwF0QgXVwE pic.twitter.com/jIXuYCcndG
— XBOX (@XBOX) January 18, 2022
During the epidemic, demand for video games has increased as consumers who are stranded at home play more games to keep themselves engaged. The Activision catalog of titles, which includes “Call of Duty” and “Overwatch,” provides Microsoft’s Xbox gaming platform an advantage against Sony’s Playstation, which has had a more consistent supply of exclusive games for years.
Activision Blizzard’s CEO, Bobby Kotick, will remain in his position.
Take-Two Interactive Software Inc, a rival videogame publisher, announced last week that it will buy “FarmVille” developer Zynga for $11 billion in cash and stock, marking one of the largest industry-wide acquisitions ever.
