Microsoft Purchasing Activision Blizzard.

Today, Microsoft (Microsoft Gaming) has announced that they intend to acquire Activision Blizzard. The amount, an astounding $68.7 Billion, which is equivalent to $95.00 per share!

The acquisition will include World of Warcraft, Diablo, Overwatch, Call of Duty, and much more.

Once the deal is complete, it will push Microsft to the third-largest gaming company; behind Tencent and SONY.

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Why Blizzard Activision?

Given Activision Blizzard’s current issues, you’d imagine that the company wouldn’t be of interest to any potential buyers. However, it appears that Microsoft sees value in the company, most likely Call of Duty and the potential in Hearthstone, Diablo, and World of Warcraft (Classic).

Reports suggest that the gaming industry is the largest and fastest-growing form of entertainment, worth almost $200 Billion. With a potential increase from 3 billion gamers to 4.5 billion by 2030, it was probably an opportunity Microsoft couldn’t turn down!

Microsoft Statement – via Microsoft News Centre

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Blizzard Activision Quarterly Results:

According to the Activision Blizzard Third Quarter 2021 Financial Report, they reported strong results for the third quarter. I’d guess they expect continued success in the fourth quarter with the release of Call of Duty. There was also success for King and World of Warcraft Classic.

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Activision Blizzard Shares:

I wonder if news circulated on Friday 14th January, as Blizzard’s shares rocketed from $69.39 to $86.55 a share. The share price hasn’t been this high since the end of August.

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Is Bobby Kotick Leaving?

Sadly, if you were hoping this acquisition would result in Kotick leaving, I’m afraid it’s not, well, not just yet! 

“Bobby Kotick will continue to serve as CEO of Activision Blizzard. Once the deal closes, Activision Blizzard business will report to Phil Spencer, CEO of Microsoft Gaming.” – Microsoft PR.

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Activision Blizzard Gaming Catalog on Game Pass?

Phil Spencer, CEO of Microsoft Gaming, has also clarified that they hope to have as many Activision Blizzard games as possible on the XBOX Game Pass once the company’s purchase is complete. 

My concern would be the players with months, possibly years of game time on their World of Warcraft accounts, who already have an XBOX Game Pass.

I have an XBOX Game Pass, but due to the changes in purchasing game time for WoWToken, I don’t have anything longer than two months, but I know of players with many years on their accounts.

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Conclusion:

As mentioned above, this news came out of the blue to me, and no doubt, to many others. With the constant issues revolving around Activision Blizzard and the small success surrounding the last quarterly financial reports, a vast potential in gaming meant Microsoft Gaming probably saw an opportunity they couldn’t resist.

Hopefully, Microsoft Gaming can make the necessary changes within Activision Blizzard and incorporate its values into the company. Hopefully, bring an end to the inequality, improving working conditions, which will positively result in improved development across all departments; If you look after the staff, the staff will look after you!

Maybe, just maybe, we’ll see a return of some of the talented developers that recently left boycotting the dire situation at Activision Blizzard.

It’ll be fascinating watching the development of World of Warcraft under the guidance of Microsoft Gaming.

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