What Did Microsoft Pay for Blizzard?
In a monumental deal, Microsoft has acquired Activision Blizzard, the parent company of popular gaming franchises such as Call of Duty, World of Warcraft, and Diablo, for a staggering $68.7 billion. This acquisition marks one of the largest in the gaming industry’s history, and it’s essential to understand what Microsoft paid for Blizzard.
The Deal
The acquisition was finalized on January 18, 2023, after a lengthy regulatory review process. As part of the deal, Microsoft agreed to pay $95 per share for Activision Blizzard’s outstanding stock, which translates to a total value of $68.7 billion. This massive sum includes the acquisition of Activision Blizzard’s subsidiaries, including Blizzard Entertainment, King Digital Entertainment, and Major League Gaming.
What Did Microsoft Get?
So, what exactly did Microsoft pay for Blizzard? The acquisition brings a treasure trove of gaming franchises, including:
• Call of Duty: One of the most popular first-person shooter franchises, with over 300 million players worldwide.
• World of Warcraft: A massively multiplayer online role-playing game (MMORPG) with over 100 million registered accounts.
• Diablo: A popular action RPG franchise with a dedicated fan base.
• Overwatch: A team-based shooter with a strong competitive esports scene.
• Hearthstone: A popular online collectible card game based on the Warcraft universe.
• Candy Crush: A popular mobile game franchise with over 100 million daily active users.
• King Digital Entertainment: A leading mobile game developer and publisher with a portfolio of popular titles, including Candy Crush Saga and Farm Heroes Saga.
Why Did Microsoft Acquire Blizzard?
Microsoft’s acquisition of Activision Blizzard is a strategic move to strengthen its position in the gaming industry. The company aims to leverage Blizzard’s intellectual property, talent, and expertise to expand its gaming portfolio and reach a broader audience. Additionally, the acquisition provides Microsoft with a foothold in the growing esports market, with Blizzard’s popular titles and competitive gaming events.
What Happens to Activision Stockholders?
As part of the deal, Activision Blizzard stockholders will receive $95 per share for their outstanding stock. This represents a significant premium over the company’s pre-acquisition stock price. The acquisition is expected to close in the second half of 2023, subject to regulatory approvals.
Comparison to Other Tech Acquisitions
To put this acquisition into perspective, here are some notable tech acquisitions:
| Acquirer | Acquired Company | Deal Value (in billions) |
|---|---|---|
| Microsoft | Activision Blizzard | $68.7 |
| Dell | EMC | $67 |
| IBM | Red Hat | $34 |
| $19 |
Conclusion
Microsoft’s acquisition of Activision Blizzard is a significant milestone in the gaming industry, marking one of the largest deals in the sector’s history. The acquisition brings a wealth of gaming franchises, intellectual property, and talent to Microsoft’s portfolio, positioning the company for long-term growth and success in the gaming and esports markets. As the gaming industry continues to evolve, it will be fascinating to see how Microsoft leverages its new assets to drive innovation and growth.