Does Activision own Blizzard?

Does Activision Own Blizzard?

The gaming industry has seen a significant shift in recent years, with the rise of mergers and acquisitions between major game developers and publishers. One of the most notable acquisitions was the merger between Activision and Blizzard Entertainment in 2008. But does Activision still own Blizzard?

A Brief History of the Merger

Activision and Blizzard Entertainment were two separate companies before the merger. Activision was founded in 1979 by David Crane and Larry Kaplan, while Blizzard Entertainment was founded in 1991 by Mike Morhaime and Frank Pearce. The two companies had a long history of competition, with Activision being a major publisher of games such as Call of Duty and Tony Hawk’s Pro Skater, while Blizzard Entertainment was known for its hit franchises such as World of Warcraft and StarCraft.

In 2008, Activision and Vivendi Games, the parent company of Blizzard Entertainment, announced that they would be merging to form Activision Blizzard. The merger was completed in 2008, and since then, Activision Blizzard has become one of the largest game developers and publishers in the world.

The Current Ownership Structure

So, does Activision own Blizzard? The answer is yes, but not entirely. Activision Blizzard is a publicly traded company, listed on the NASDAQ stock exchange under the ticker symbol ATVI. As a result, there is no single entity that owns the company. Instead, the company is owned by its shareholders, who can buy and sell shares of the company on the open market.

However, it’s worth noting that the largest shareholder of Activision Blizzard is the investment firm, Tencent Holdings, which owns approximately 12% of the company’s outstanding shares. Tencent is a Chinese conglomerate that has invested in a number of gaming companies, including Riot Games, the developer of League of Legends.

The Acquisition of Activision by Microsoft

In January 2022, Microsoft announced that it would be acquiring Activision Blizzard in a deal valued at $68.7 billion. The acquisition is still pending regulatory approval, but it is expected to be completed in the near future.

If the acquisition is completed, Microsoft will become the new owner of Activision Blizzard, including its subsidiaries such as Blizzard Entertainment. This will give Microsoft a significant presence in the gaming industry, with a portfolio of popular franchises such as Call of Duty, World of Warcraft, and StarCraft.

The Impact on Blizzard Entertainment

The acquisition of Activision Blizzard by Microsoft is likely to have a significant impact on Blizzard Entertainment. Blizzard has a long history of operating independently, with a focus on developing high-quality games such as World of Warcraft and StarCraft. However, under Microsoft’s ownership, Blizzard may be required to adapt to the company’s corporate culture and strategies.

It’s also worth noting that Microsoft has a history of acquiring gaming companies and integrating them into its own operations. For example, Microsoft acquired Rare, the developer of GoldenEye 007 and Perfect Dark, in 2002. Rare was integrated into Microsoft’s Xbox division, and the company went on to develop a number of successful games for the Xbox console.

Conclusion

In conclusion, does Activision own Blizzard? The answer is yes, but not entirely. Activision Blizzard is a publicly traded company, and its ownership structure is complex, with a number of shareholders, including Tencent Holdings. However, if the acquisition of Activision Blizzard by Microsoft is completed, Microsoft will become the new owner of Activision Blizzard, including its subsidiaries such as Blizzard Entertainment.

The acquisition is likely to have a significant impact on Blizzard Entertainment, and it will be interesting to see how the company adapts to its new ownership structure.