Can Activision deal still go through?
The billion-dollar acquisition between Microsoft and Activision Blizzard has been a long-drawn-out saga, with concerns over competition and antitrust issues lingering in the shadows. But, has the deal finally been resolved?
Yes, the acquisition has gone through!
On October 13th, 2022, Microsoft completed its acquisition of Activision Blizzard, in a deal valued at a whopping $69 billion. Despite initial regulatory hurdles and competitor concerns, the merged companies are now officially under Microsoft’s wing.
Timeline of Events
| Timeline | Event |
|---|---|
| January 2022 | Microsoft announces plans to acquire Activision Blizzard for $69 billion |
| February-March 2022 | Regulatory scrutiny begins, including antitrust investigations by regulators in the US and the UK |
| April 2022 | The US Federal Trade Commission (FTC) files a complaint to block the deal due to concerns over competition and antitrust issues |
| Summer 2022 | A US judge rules against the FTC, clearing the way for the deal |
| October 2022 | Microsoft completes the acquisition of Activision Blizzard |
| Present | Microsoft operates Activision Blizzard as its new gaming division, acquiring popular titles such as Call of Duty and Overwatch |
Significance of the Acquisition
The Microsoft-Activision Blizzard deal is a massive step forward for Microsoft’s gaming division, consolidating its position in the market. The combined force of Activision Blizzard’s popular franchises and Microsoft’s Xbox and PC gaming strengths will likely shape the industry’s future.
Possible Outcomes
As part of the acquisition, the merged companies will now form a behemoth of an entertainment powerhouse. This creates opportunities for:
- Exclusive content collaborations between Xbox, PC, and console players
- Improved gaming experiences for fans through enhanced technical support and online services
- Increased focus on online engagement and multiplayer experiences
On the flip side, opponents of the deal had highlighted concerns about:
- Overwhelming dominance in the industry, leading to a diminished competitive landscape
- Pressure on independent game developers, potentially stifling innovation
Remaining Questions
- How will the acquisition influence the competitive landscape, including the PlayStation and Nintendo fan bases?
- What effects will this have on industry trends, such as free-to-play models, Battle Royale formats, and in-game advertising?
- What role will Activision Blizzard’s own franchises play under Microsoft’s umbrella, potentially leading to new franchises, spin-offs, or cancelled projects?
What about the Stock Price?
Before the deal, Activision Blizzard’s stock prices dropped significantly, but since the acquisition was approved, they have begun recovering. Would-be investors should be monitoring the situation closely to reassess their investment opportunities.