Will Microsoft close the deal?

Will Microsoft Close the Deal?

In a matter of days, Microsoft will finally close its $69 billion acquisition of Activision Blizzard, one of the world’s most-valuable gaming companies. The announcement was made in January 2022, and regulatory bodies have been reviewing the deal ever since. Yes, Microsoft will close the deal.

Microsoft’s Motivation

Microsoft acquired Activision Blizzard to expand its gaming division, Xbox. The deal will give the company access to Activision’s popular franchises, such as Call of Duty and World of Warcraft. Xbox will also gain a large player base and a strengthened position in the gaming industry.

Regulatory Roadblocks

The deal did face some regulatory roadblocks, however. The transaction was subject to approval by antitrust authorities in various countries, including the European Union, the United Kingdom, and the United States. Regulators initially expressed concerns about the potential impact on competition and market share in the console gaming market.

Merger Terms

Under the terms of the deal, Activision Blizzard shareholders will receive $95 for each share of Activision Blizzard they owned prior to the close of trading on October 12, 2023. The acquisition price represents a premium of 25% over Activision Blizzard’s closing stock price on January 10, 2022, when the deal was announced.

Timeline

Here’s a brief timeline of the acquisition:

• January 2022: Microsoft acquires Activision Blizzard for $69 billion
• February 2022: Regulatory review begins
• October 2023: Acquisition expected to close
• October 12, 2023: Trade date for Activision Blizzard shareholders

What it Means for Gamers

The acquisition is expected to have a significant impact on the gaming industry. Microsoft will gain access to a large library of games and intellectual property, which could lead to new gaming opportunities and experiences. Existing Activision Blizzard games are expected to remain available on multiple platforms, including PlayStation and Nintendo Switch, at least in the near term.

What’s Next for Microsoft and Xbox

With the acquisition set to close, Microsoft’s focus will shift to integrating Activision Blizzard’s employees, assets, and game franchises into its Xbox business. Microsoft has signaled plans to invest in growing the gaming division, particularly in the areas of PC gaming and cloud gaming. The company will also be looking to leverage Activision Blizzard’s expertise in gaming and esports to enhance the Xbox brand.

Frequently Asked Questions

• Will Microsoft close the deal? Yes, Microsoft will close the deal in October 2023, pending regulatory approval.
• What is the value of the acquisition? The acquisition is valued at $69 billion.
• What games will remain available on other platforms? Existing Activision Blizzard games are expected to remain available on multiple platforms, including PlayStation and Nintendo Switch, at least in the near term.
• What will happen to Activision Blizzard employees? Microsoft plans to integrate Activision Blizzard’s employees into its gaming division, with many roles expected to remain unchanged in the short term.

By closing the deal, Microsoft will solidify its position as a major player in the gaming industry and drive growth for its Xbox division. The acquisition presents significant opportunities for innovation, investment, and expansion of the gaming ecosystem.