How much would it cost to buy Activision?

How Much Would it Cost to Buy Activision?

In January 2022, Microsoft announced its plans to acquire Activision Blizzard, a leading video game developer and publisher, for a staggering $68.7 billion. This massive deal has raised many questions, including the cost of acquiring the company. In this article, we will dive into the details of the acquisition and explore the answer to the question: how much would it cost to buy Activision?

The Acquisition Deal

On January 18, 2022, Microsoft and Activision Blizzard announced a definitive agreement for Microsoft to acquire Activision Blizzard for $95 per share, valuing the company at $68.7 billion. The acquisition is expected to be completed in the second half of 2023, pending regulatory approvals.

Breaking Down the Cost

To understand the cost of buying Activision, let’s break down the acquisition deal:

• $95 per share: This is the price Microsoft is paying for each share of Activision Blizzard’s outstanding common stock.
• $68.7 billion: This is the total value of the acquisition, which is the product of the number of outstanding shares and the price per share.
• Activision Blizzard’s market capitalization: At the time of the announcement, Activision Blizzard’s market capitalization was approximately $74.28 billion.

Comparison to Other Acquisitions

To put the cost of buying Activision into perspective, let’s compare it to other notable acquisitions in the gaming industry:

Why Buy Activision?

So, why would Microsoft pay such a massive sum to acquire Activision Blizzard? Here are some reasons:

• Gaming Expansion: Activision Blizzard’s portfolio of popular games, including Call of Duty, World of Warcraft, and Candy Crush, will help Microsoft expand its gaming offerings and reach a wider audience.
• Cloud Gaming: Activision Blizzard’s expertise in cloud gaming will complement Microsoft’s own cloud gaming efforts, such as xCloud.
• Growth Potential: Activision Blizzard’s games have a strong track record of growth, and the company’s acquisition will provide Microsoft with a significant boost to its gaming revenue.

What’s Next?

Now that the acquisition deal is announced, the next step is for Microsoft to complete the regulatory approvals process. This is expected to take several months, after which the acquisition will be completed.

Conclusion

In conclusion, the cost of buying Activision Blizzard is a staggering $68.7 billion, which is a significant investment for Microsoft. However, the acquisition is expected to provide a significant boost to Microsoft’s gaming revenue and expand its offerings in the gaming industry. As the gaming industry continues to evolve, we can expect to see more major acquisitions and partnerships in the future.